Gold prices retreat from over five-week highs as dollar crawls up
December 5, 2018
Gold prices dipped on Wednesday, retreating from a more than five-week top hit in the previous session, as the dollar crawled higher.
Spot gold was down 0.2 per cent at $1,235.31 per ounce at 06:48 GMT, after hitting its highest since Oct. 26 at $1,241.86 an ounce in the previous session. U.S. gold futures were down 0.5 per cent at $1,240.7 per ounce.
"Gold is mainly tracking the U.S. dollar," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
"Today's move in gold prices is a correction because yesterday prices were up quite a bit."
The dollar index, which measures the greenback against a basket of six major currencies, edged up about 0.1 per cent, even though the U.S. currency was under pressure as declining Treasury yields raised concerns over economic growth. [USD/]
The benchmark 10-year Treasury yield fell to its lowest point since mid-September. The spread between the 10-year yield over its two-year counterpart also shrank to the smallest since the start of the financial crisis in January 2008, signalling to some investors an approaching economic slowdown.
Meanwhile, palladium retreated 0.5 per cent to $1,226.49 per ounce, trading in close proximity to the yellow metal and after notching its record high hit on Tuesday.
Spot silver fell 0.4 per cent to $14.46 per ounce, while platinum was 1.8 per cent lower at $788.90 per ounce after hitting its lowest level since Sept. 17 at $787.5 earlier in the session.