According to Mining News Pro - Gold prices held steady near a six-month peak scaled on Friday, supported by a weaker dollar, worries over global economic growth and stock market tumult, propelling bullion to a second week of gains. Spot gold was up 0.2 percent at $1,277.09 per ounce by 1330 GMT, and up 1.6 percent so far this week. Earlier it had peaked at $1,282.09, its highest since June 19. U.S. gold futures were down 0.1 percent at $1,279.70 per ounce. "Gold prices rose as market sentiment soured anew, weighing on bond yields and cooling U.S. Federal Reserve rate hike bets. That buoyed the appeal of non-interest-bearing bullion," said Ilya Spivak, a currency Strategist at DailyFx. "From here, follow-through buying seems unlikely as traders withhold conviction ahead of the long weekend and New Year holiday liquidity drain." The dollar index , a gauge of its value against six major peers, fell 0.3 percent, adding to gold`s appeal by making it cheaper for holders of other currencies.
Financial markets are expecting U.S. growth to slow next year due to rising interest rates. A measure of U.S. consumer confidence posted its sharpest decline in more than three years in December, emphasising the possibility. A darkening outlook for global economic growth, a simmering trade war between the United States and China, as well as Brexit-linked uncertainty may trigger renewed risk aversion and help lift gold prices in 2019, Spivak said. Gold is often used by investors as a hedge against political and financial uncertainty. "We are seeing good amount of selling from the producers to take advantage of higher prices, which has stopped gold`s rally on the upside," said Afshin Nabavi, senior vice president at MKS SA. "As long as the U.S. government continues to remain shut, it may invoke some safe-haven bids and help gold to touch new highs." Both chambers of the U.S. Congress convened for only a few minutes late on Thursday, but took no steps to end a partial federal government shutdown before adjourning until next week.
Meanwhile, stocks in Europe and Asia rose cautiously after Wall Street ended a volatile session with big gains, but fears of further price swings and worries about U.S. politics kept safe-haven currencies such as the yen and Swiss franc in demand. Among other precious metals, silver rose to a near-5-month high at $15.36 per ounce and by 1330 GMT was up 0.8 percent at $15.31. It was on track for its biggest weekly gain since August 2017, up 4.7 percent so far this week.
Platinum was down 0.3 percent at $793.40 per ounce, while palladium dipped 0.9 percent to $1,263.63. Palladium has gained 2.6 percent this week.