Gold Prices Drop After Recent Gains

London (Dec 21)  Gold prices weakened slightly on Friday even as the dollar remained on track to post its biggest weekly loss in 10 months amid the threat of a government shutdown.

Spot gold slid half a % to USD1,257.35 per ounce, after rising over 1% in the previous session. US gold futures were down 0.6% at USD1,260.40 per ounce.

The dollar consolidated overnight losses after President Donald Trump told House Republicans he is unwilling to sign a short-term spending bill approved by the Senate Wednesday night due to a lack of funding for his controversial border wall.

Many analysts expect the dollar to go down in coming weeks, reflecting waning investor confidence in the world's largest economy.

While it is still too soon to talk of a recession, volatile markets, the Fed's policy stance and lingering trade tensions fanned investor unease over the economic outlook, heading into 2019.Traders expect risk sentiment to remain on very wobbly conditions entering the New Year.

AllianceNews