Gold prices languished near a five-week low on Friday, set for a decline of more than 1 percent this week, weighed down by a strong dollar, high US Treasury yields and easing geo-political concerns. Spot gold was steady at $1,316.34 per ounce at 0700 GMT, not far from a low of $1,315.06 an ounce hit in the previous session, its weakest since March 21. US gold futures were down 0.1 percent at $1,317.20 per ounce.
"The strength of the US dollar - combined with the weakness of the eurozone currency, after (ECB chief) Mario Draghi speech - is pushing down the yellow metal. The recovery of the greenback is stopping any gold bullish movement," said Activtrades chief analyst Carlo Alberto De Casa. "We are still in the channel between $1,300 and $1,360, but, again, we are approaching the bottom area of this lateral trading range. We could expect a first reaction of the precious metal if prices reach 1,300/1,305," Alberto De Casa said.
Meanwhile, political risks were seen easing after North Korean leader Kim Jong Un and South Korean President Moon Jae-in met on Friday in the first summit for the two Koreas in over a decade. The meeting, aimed at ending their decades-long conflict, comes weeks before Kim is due to meet US President Donald Trump.
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