Gold slips below $1,180/oz as US dollar weighs

The spot gold price eased during Asian trading hours on Friday November 25 as a strong US dollar continued to weigh on the yellow metal.

The spot gold price was recently quoted at $1,176.65/1,176.95 per oz, down $9.10 on the previous close. Trade has ranged from $1,171.33 to $1,186.72 so far, the lower end being the lowest since February 8 this year.

“Technically, a weekly close below $1,201 will signal a short-term bearish tone while a break below $1,179 cash would see $1,130 being re-tested soon,” Commerzbank said in a report late on Thursday.

The US dollar index has continued to strengthen amid positive US economic data while putting pressure on the gold price. The index had reached as high as 102.05 on Thursday, the highest since March 2003. It was recently at 101.74 on Friday, up 0.05% from the previous close.

The US is closed for Thanksgiving holiday on Friday which should result in quieter trading leading into the weekend, Commerzbank said.

In other commodities, the Brent crude oil spot price increased 0.12% to $48.92 recently in the day.

In equities, the Shanghai Composite fell 0.36% to 3,229.97 so far on Friday.

Key US economic data due later today includes goods trade balance, preliminary wholesale inventories and flash services PMI.

In the other precious metals, the spot silver price fell $0.075 to $16.25/16.27 per oz. Platinum at $906/911 per oz was down $6 while palladium was eased $3 to $725/731 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 269.20 yuan ($39) per gram, and the June silver was at 4,103 yuan per kilogram.

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