Gold Prices Unchanged as Silver Prices Drift Lower

Gold prices were mostly unchanged on Friday after ending Thursday’s trading session higher, preceded by four consecutive sessions of losses as investors and market watchers look for a direction in a market concerned with multiple fronts. Silver prices moved lower in early trading on Friday.

Gold is currently set on a course for its biggest weekly drop in two months with the spot price down 0.04 percent to $1,767.40 per troy ounce as U.S. gold futures for December delivery drifted down 0.03 percent to $1,768.30 per troy ounce.

Earlier in trading on Thursday, the price of gold inched higher following the dollar’s ease from a one month high against a basket of major currencies. The euro regained 0.6 percent against the dollar, making dollar-priced commodities cheaper for foreign dealers.

Gold swung between $1,760 and $1,780 as concerns over reports of economic slowdown in China and news out of the euro zone gave investors reason to stya on the sidelines, waiting for a clearer signal as to the market’s direction.

Recent growth slowdown in China has given way to official data from Hong Kong reporting a 26 percent drop in gold volume imported from Hong Kong to mainland China, a significant drop for one of the world’s largest gold markets.

In the euro zone, investors anxiously await the Spanish government’s official request for bailout money from the European Union as the recent high rates at Bund auctions in Germany signal investor concern over the health of the euro economies.

On Thursday, October 11, holdings in gold-backed exchange-traded funds dropped for the first time in two weeks, though remaining near record highs of 75.03 million ounces.

Meanwhile, physical demand is expected to increase over the coming days of trading as the two biggest consumers of gold in the world, China and India, enter their peak consumption season, according to the analysis of Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

The U.S. dollar dropped for a second day against the euro with the U.S. Dollar Index falling 0.04 percent to 79.84. The Index tracks the performance of the U.S. dollar against a basket of six major currencies.

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