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The Financial Express

Gold prices little changed amid strong dollar

| Updated: October 19, 2017 06:08:39


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Gold traded little changed on Friday amid pressure from a stronger dollar, but was headed for its biggest monthly fall this year amid rising prospects of a US rate hike in December.

Spot gold was nearly unchanged at $1,286.96 per ounce as of 0720 GMT, on track to register a 2.5 per cent decline in September, its largest monthly fall so far in 2017 and the biggest since November 2016.

However, it was set to end the quarter around 3.7 per cent higher, according to Reuters.

US gold futures rose 0.1 per cent to $1,289.70 per ounce.

Gold is mostly being influenced by the dollar's movements in an otherwise quiet session, said Yuichi Ikemizu at ICBC Standard Bank in Tokyo.

The US dollar inched higher and was on track for its biggest weekly gain this year as investors pondered the Trump administration's tax plan and the outlook for US Federal Reserve policy.

Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the greenback.

Meanwhile, palladium gained 0.7 per cent to $935.70 per ounce. It was up 11 per cent for the quarter and 38 percent so far in 2017.

Platinum rose 0.5 per cent to $924 per ounce. The metal is set for a 7.1 per cent drop for September, its worst performing month since March.

Silver edged 0.1 per cent higher to $16.84 per ounce and was on track for a 4.0 per cent loss on month, but was set to end the quarter 1.7 per cent higher.

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