Gold is heading for its biggest decline in 7 weeks

Gold is heading for its biggest decline in 7 weeks

Gold was little changed on Friday, heading for its biggest weekly drop in seven weeks as investors sought higher returns than the metal by buying into riskier assets.

Spot gold was up 0.1% at $ 1264.86 an ounce, while US gold futures rose 0.1% to $ 1266.80.

Gold is heading for a weekly loss of about 1.5%, which will be the biggest one week in percentage since the week ending March 10th, but is heading towards a monthly increase of 1.3%.

Silver rose 0.6% in spot trade to $ 17.32 an ounce after touching a one-and-a-half-month low of $ 17.19 in the previous session.

Palladium stabilized at $ 815 after hitting $ 817.55 an ounce, its highest price since March 2015. The metal is the only gainer this week among precious metals and is moving towards a 3% increase.

Strong growth figures from Spain pushed the euro higher in early European trade on Friday after trading for a week at a six-month high as political risk eased in France.

Mario Draghi, head of the European Central Bank, was cautious at his press conference on Thursday, dropping in the euro from $ 1.09 and raised recently that the bank would seek to curb any gains for the euro, fearing to undermine the hard-won inflation gains.

Poor French consumer spending and growth have highlighted the risks still facing the euro-zone economic recovery after 10 years of debt crises and financial troubles.

But slightly higher Spanish numbers – a 3 percent growth in the economy in the first quarter of the year – again pointed to an improvement that some in the market expect will encourage the ECB to begin cutting stimulus measures later this year.

By 0743 GMT, the euro was up 0.14% at $ 1.0887, standing less than a cent from the five and a half month high on Wednesday.

The dollar index was steady at 99.06, heading for a monthly decline that will be its third this year.

Against the Japanese currency, the dollar rose to 111.30 yen, up 1.9 percent for the week, but down 0.2 percent for the month.

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