Gold prices dipped again Friday as the greenback continued its week-long surge.
Benchmark bullion futures were slipping $3.50 at $868.50 an ounce in recent action on the Comex division of the New York Mercantile Exchange. The price of dollar-denominated assets, such as precious metals, tend to decline as the value of the U.S. currency appreciates.
The euro was buying $1.5326, down from $1.542 on Thursday, and is now more than 3% below where it was Monday. One dollar was trading for 108.2 Japanese yen, up from 107.9 yen previously, and the British pound was selling for $1.9434 vs. $1.9471 a day earlier. The dollar was buying 1.0519 Swiss francs, up from 1.0432.
The big impetus for the dollar's surge is a changing view of how the
sees the problem of rising consumer price inflation relative to economic growth.
"The Fed needs to protect its credibility by demonstrating it is willing to tighten rates and protect the dollar even with a relatively weak outlook for growth," writes the foreign-exchange strategy team at Barclays Capital in London in a recent research report.
CurrencyShares Euro Trust
was losing 0.6%, while the
CurrencyShares Japanese Yen Trust
CurrencyShares British Pound Sterling
were both off around 0.2%.
CurrencyShares Swiss Franc Trust
was down 0.9%.
SPDR Gold Trust
, which holds inventories of gold, was falling 0.6%.
In the precious metal patch, stalwarts