Gold price slips from one-year high as dollar recovers

London (Sept 11)  Gold prices in the global market slipped during Monday’s trade from a 13-month high after North Korea did not conduct a missile test resulting in a recovery in dollar and bond yields.

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

 Spot gold was down 0.6% at USD 1,338.06 an ounce by 0954 GMT, on track for its worst day since August 15. On Friday it touched USD 1,357.54, the highest level since August last year.

 US gold futures for December delivery were down 0.7% at USD 1,342.30 an ounce.

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

 Silver eased by 0.3% to USD 17.87 an ounce, down from Friday’s five-month high of USD 18.21, while platinum was flat at USD 1,004.60.

HFL