Gold futures fell modestly Friday, hurt by a firmer dollar as the greenback drew global buying interest as a shelter from a currency crisis in Turkey and market volatility kicking up in Russia.
Gold, too, has historically had a role as a haven asset in times of global market turbulence. Instead, the precious metal’s inverse relationship to a firmer dollar, boosted in large part by rising U.S. interest rates relative to other major economies, has held the upper hand recently, as it did again on Friday.
December gold fell $1.90, or 0.2%, at $1,218.00 an ounce. The contract is headed for a 0.4% weekly decline after early-week gains gave way to a retreat Thursday and so far on Friday. The commodity, which remains near the lows of the year, is down about 1.2% for August so far and off about 8.6% in the year to date.
Global markets stumbled following a Financial Times report that the European Central Bank is growing more concerned about exposure of European banks to Turkey’s woes. The Turkish lira plunged to its lowest in a year against the U.S. dollar on Friday.
Source : Marketwatch