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Gold Prices Slide Along With A Softer Dollar

Published 12/31/2000, 07:00 PM
© Reuters. Gold prices were mixed on Friday morning
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Investing.com – Gold prices were mixed on Friday morning as the dollar slipped along with the 10-year U.S. treasury yields that retreated to below the 3% mark.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange was down $0.20, or 0.02%, to $1,317.60 a troy ounce by 10:53PM ET (02:53 GMT).

The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 91.32, down 0.08%.

The United States 10-Year slipped back to below the 3% level. The yield was driven up to a new four-year high of 3.033% this week since early 2014, shoring up the dollar.

As the dollar rose to a three-month high at above the 91 mark, the preciosu metals were under pressure. Gold was particularly trading at a one-month low at the 1,310 range.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.

However, this did not apply to the morning market on Friday, as gold prices slipped together with the dollar.

Meanwhile, the historic summit between North Korea and South Korea on Friday morning tamed the geopolitical tensions in East Asia.

Deemed as a safe-haven asset, gold attracts demand in times of elevated geopolitical risks, and vice versa. As inter-Korean relations seemed to improve, it eased geopolitical concerns and investors turned to risk assets instead.

In other precious metal trade, silver futures lost 0.13% to $16,470 a troy ounce, and platinum futures steadied at $909.20 an ounce.

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