By Thomas Podvin
Gold prices remained range-bound between $1336-1340 on Friday morning in London and is set to be higher on the week, in what some commentators called a "Rally Losing Steam" as global equities rose. The US Dollar remained solid amid strong expectations of a Fed's rate hike later this year. After the release of worse-than-expected US retail sales data published 1.30pm London time, the Gold Price rose to $1,354.
US major indices closed together at record highs Thursday, a first since 1999 according to Bloomberg. Asian equities closed higher and European stock markets, bar the German index DAX, all rose on Friday morning.
German growth was not as slow as expected in the second quarter according to a report from the Federal Statistics Office.
The Euro slightly rose versus the Dollar to $1.1152, a July high, although the €/$ cross already reached a 6-weeks high at $1.1220 in August.
Comments by San Francisco Fed President John Williams on a real possibility of a US interest rate hike after this year's US election supported the strength of the greenback.
"Gold should hold steady above $1300," a China-based trader told Reuters, warning that "there could be a knee-jerk reaction on a rate hike."
Brent crude oil rebounded and was set for weekly gains as silver and platinum prices eased back, as did copper prices.