Gold regains ground as dollar continues slide

Gold prices rose during the European session on Friday, to resume gains after pausing yesterday on profit-taking from a 4-week high, as the US dollar fell against a basket of global currencies.

Gold prices rose 0.3% to $1,478.28, after opening at $1,474.23, and hit a session-low of $1,473.16.

The yellow metal closed lower by 0.2% yesterday, on profit-taking from a 4-week high of $1,484.07 an ounce.

The US dollar fell by 0.1% against its rivals on Tuesday, to deepen its losses for the sixth straight day, reflecting its drop against a basket of currencies.

This drop in dollar is due to successive weak US data on major sectors, which boosted the odds for a fourth US rate cut this year.

ADP data showed Yesterday that the US private sector jobs creation in November was at the slowest pace in the last six months, and the services sector growth slowed more than expected during the same period.

Gold holdings at the SPDR Gold Trust, fell yesterday by 0.59 metric tonnes, to a total of 888.57 mt (the lowest since Sept.18).