By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures extended gains in electronic trading Friday, climbing above $1,660 an ounce, while the broader metals complex declined.
Gold for April delivery GCJ2 +0.20% edged up $1.60, or 0.1%, to $1,661.30 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
The metal earlier closed the North American session 1% driven by a combination of bargain hunting and a weak U.S. dollar. Read more on Thursday's gold session.
Despite the gains, gold is on track to post a weekly loss of 2.9% with dampened expectations of more monetary stimulus from the Federal Reserve and a stronger U.S. dollar key factors pressuring prices.
“The reduced probability of further quantitative easing in the U.S. [has] weighed upon the precious metals,” strategists at Barclays Capital said, “Gold still faces near-term hurdles such as bouts of dollar strength, broad risk reduction and profit-taking.”
“However, the broader macro backdrop remains favorable for gold, given the negative interest rate environment, longer-term inflationary concerns and lingering sovereign debt uncertainties,” the strategists added.
The broader metals complex declined during Asian trading hours.
Silver for May delivery SIK2 -0.19% slipped 10 cents, or 0.3%, to $32.63 an ounce.
May copper HGK2 -0.19% lost 1 cent, or 0.4%, to $3.88 a pound.
April platinum PLJ2 +0.40% shed 20 cents to $1,683.70 an ounce, while June palladium PAM2 -1.10% dropped $4.40, or 0.6%, to $705.50 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
