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Gold prices slip lower as U.S. dollar mildly recovers

Published 17/02/2017, 07:58
Gold moves lower on slightly stronger greenback
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Investing.com - Gold prices slipped lower on Friday, as the U.S. dollar slightly recovered from losses posted in the previous session, although ongoing geopolitical concerns were likely to continue to support safe-haven demand.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.28% at $1,238.05, just off Thursday’s one-week high of 1,240.70.

The April contract ended Thursday’s session 0.69% higher at $1,241.60 an ounce.

Futures were likely to find support at $1,217.30, Wednesday’s low and resistance at $1,243.50, the high of February 9.

The dollar regained some ground on Friday, helped by recent upbeat data and positive comments by Federal Reserve Chair Janet Yellen.

The U.S. Department of Labor reported on Thursday that initial jobless claims increased by 5,000 to 239,000 last week, compared to expectations for a 11,000 rise to 245,000.

Data also showed that building permits jumped by 4.6% to 1.285 million units last month from 1.210 million in December.

The greenback had strengthened broadly after Ms. Yellen told the U.S. Senate Banking Committee on Tuesday that the central bank will likely need to raise interest rates at one of its upcoming meetings.

Ms. Yellen said that waiting too long to raise interest rates would be "unwise," given the rise in inflation and economic growth.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.09 at 100.54, off the previous session’s one-week low of 100.40.

Elsewhere in metals trading, silver futures for March delivery slipped 0.15% to $18.047 a troy ounce, while copper futures for March delivery dropped 0.50% to $2.705 a pound.

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