On Friday, gold prices glided in a stiff range after experiencing a near three-week low in early trade as the dollar rallied against the euro following the decision of the European Central Bank to extend its bond-buying programme.

As of 2:53 AM GMT, spot gold was coarsely unchanged at $1,267 an ounce, after hitting its lowest since October 6 at $1265.08. Gold was led to an about 1% weekly decrease.

U.S. gold futures for December delivery was at 0.1% to $1,268.00.

“How gold finishes the week will now be entirely at the whim of the U.S. dollar and U.S yields, with little to no geopolitical safe haven premium left in the price,” said Jeffrey Halley, a senior market analyst.

“The futures market is still constructively long the yellow metal, and this will continue to weigh on prices as fresh buyers appear to be few and far between,” he added.


The dollar was up on Friday, on its way for weekly gains, while the euro plummeted to three-month lows after the European Central Bank prolonged its bond buying and lessened the likelihood that it would increase rates in 2018.

A firm dollar makes dollar-priced gold pricier for non-U.S. investors.

“It looks like we are going to be heading a bit lower from here, from both the fundamental and technical points of view,” an analyst said.

“The next support for gold prices is the October 6 low, to $1,260.2, and if it breaks that, next support is around $1,257. The key support lies around the $1,268.80 level and once it breaches that, it could spur more fund selling.”

The spot gold may return to its October 6 low of $1,260.16 as it has damaged a support zone of $1,271 to $1,268, according to a technical analyst, Wang Tao.

Other analysts said a looming decision on who would be the next chairman of U.S. Federal Reserve could also be an essential force to drive the metal.

Gold is anticipated to remain static for another year in 2018 as increasing U.S. interest rates clip momentum, based on a poll conducted on Thursday.

Meanwhile, autocatalyst metal palladium is expected to have a hard time in maintaining recent surge to 16-year highs above $1,000 an ounce.

Silver prices were tad changed at $16.74 an ounce, platinum was down 0.4% to $914, while palladium dipped 0.2% at $967.05. All these metals were on course for weekly declines.

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