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Gold futures looked set to take a breather on Friday, capping a strong week and month for bullion that has seen the commodity on the verge of closing out July at around a six-week high.
December gold
GCZ21,
GC00,
the most-active contract, was down $3.90, or 0.2%, at $1,831.90 an ounce, following a 1.7% surge on Thursday, which marked the highest settlement for the most-active futures contract since June 16 and largest one-day percentage gain since May 6.
For the week, bullion is on track for a weekly rise of around 1.7%, which would represent its best weekly climb since the period ended May 21, with bullion looking for a 3.1% monthly advance, its third such gain of the past four months, FactSet data show.
Gains for gold have come while the U.S. dollar has weakened, providing buoyancy for bullion, which is priced in dollars. Gold gained on Thursday, buoyed by weaker-than-expected U.S. economic data, even as the Federal Reserve indicated Wednesday that the central bank may taper its bond-buying programs in coming months.
“In commodities, gold held onto its post-Fed gains but appears to have met resistance around $1,830…If the dollar’s losses deepen in the coming days and Treasury yields remain subdued, the prospect for a break above this resistance is strong,” wrote Raffi Boyadjian, lead investment analyst at XM, in a daily note.
The dollar is down 1.1% on the week, as gauged by the ICE U.S. Dollar Index
DXY,
a measure of the buck against a half-dozen currencies.
Meanwhile, demand for gold fell in a report from the World Gold Council.
