Zimpapers Logo

LONDON. — Gold prices fell yesterday from the previous session’s 13-month high as relief that North Korea did not conduct a missile test over the weekend helped to lift global stocks, the US dollar and bond yields. Demand for safer assets, including gold, also weakened after storm Irma wreaked less damage than feared in Florida. Spot gold was down 0,9 percent at $1,334.86 an ounce by 1353 GMT, on track for its biggest one-day drop since July 7. On Friday it touched $1,357.54, the highest since August last year. US gold futures for December delivery were down 0,9 percent at $1,339.20.

Gold had been lifted last week by fears of a North Korean missile launch and the impact of Irma on the US economy, helping to drive the dollar to its weakest since January 2015 and US bond yields to 10-month lows.

“Both of these events failed to materialise in a major way,” said Saxo Bank analyst Ole Hansen. “The short-term stage has been set for some consolidation (in gold prices). Much depends on where the dollar and bonds decide to go.”

A stronger dollar makes gold more expensive for holders of other currencies, potentially reducing demand, while higher bond yields increase the opportunity cost of non-yielding bullion. — Reuters.