INVESTING.COM – Gold lost ground on Friday in Asia as the US dollar gained ground and equity markets continued to climb.
Better-than-expected trade figures out of China helped shore up confidence in currencies and equity markets and take some of the shine out of gold, which is usually seen as a safe haven in troubled times.
Gold futures for August delivery were down 0.11% to $1,216.00 as of mid-morning in Asia. The US dollar index, which measures the strength of the dollar against a basked of six major currencies, was down just 0.03% to 95.53.
The greenback weakened on Thursday after US Federal Reserve Chair Janet Yellen expressed dovish views on the outlook for the US economy and the prospect of raising interest rates, saying more rates are likely to happen but without providing a timeline. Yellen's testimony coupled with ongoing political concersn in the U.S. surrounding any links that may exist between U.S. President Donald Trump and Russia.
Stock markets throughout Asia continued to gain ground on Friday, with investors anticipating relatively strong economic performances in both the U.S. and the major Asian economies for the rest of the year.