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Gold Futures Pare Early Gains, Poised for Big Weekly Gain

August 11, 2017 at 14:05 by Andrew Moran

Gold prices pared their early gains, but the yellow metal is on track for a weekly gain. The precious metal has been surging this week, primarily because of geopolitical tensions between the US and North Korea.

December gold futures rose $1.00, or 0.08%, to $1,291.10 per ounce at 13:50 GMT on Friday. Gold prices are trading at their highest levels since June 7. The yellow metal is poised for a weekly gain of 2.3%, snapping a multi-week losing streak.

Silver, the sister commodity to gold, is trading in the red to end the trading week. September silver futures tumbled $0.08, or 0.47%, to $16.98 an ounce. This comes as the precious metal settled on Thursday at its highest level since June. The white metal is headed for a weekly increase of about 5%.

Experts say that investors are making a safe-haven play amid heightened risks over a US-North Korea conflict. Both sides have been making threats in recent weeks, causing many traders fearful of a strike by either Washington or Pyongyang.

Gold was further buoyed by a declining US dollar as the greenback slipped 0.07% on Friday. A softer dollar is good for commodities like gold and silver because it makes it cheaper for foreign investors to purchase. With the US dollar trading lower, some investors are questioning if the Federal Reserve will pull the trigger on a third rate hike in 2017, which is generally bad for gold because it lifts the opportunity cost.

Any gains made by the yellow metal were capped because of tepid demand in India and elsewhere in Asia. Gold demand has been sluggish over the past week because of local prices hitting three-month highs.

Other metals are continuing to rally at the end of the trading week. October platinum futures increased $6.90, or 0.70%, to $992.20 per ounce. October palladium futures jumped $2.80, or 0.31%, to $899.85 an ounce.

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