The prices of gold slid lower in European morning on Friday, but still holds near a maximum of one year as a weaker dollar and preoccupations of global growth, lower oil prices and uncertainty about further the United States rate hikes this year continued to support safe haven demand.
On the Comex division of the New York, gold futures for April delivery were down 0.56% at $1,240.50.
Gold surged 5 per cent on Thursday, its biggest daily gain in more than seven years on the possibility that the U.S. central bank may cut interest rates instead of raising them.
The yellow metal remained supported amid lingering fears over the health of the global economy and the financial sector in the euro zone.
Markets were also nervous as oil prices were held below $ 28 a barrel on Friday, even after the Minister of Energy of the United States said the Arab OPEC was willing to talk to other exporters of cut the production.
In the US, President of the Federal Reserve, Janet Yellen, reiterates to the Senate on Thursday by comments made the day before the Congress.
While the Federal Reserve has prevented the introduction of negative rates of stocks, in testimony before Congress on Thursday, Fed Chairman Janet Yellen told the legislators that the Fed could look at the negative interest rates, if necessary.
While confidence in the battered bullion market grew, no one expects a return in the short term to the record high in 2011.
It is a dramatic change in fortunes for gold, which ended 2015 with its third consecutive yearly loss.
Just six weeks ago, low oil prices were still expected to protect the world economy, and the decision of the Federal Reserve in December to raise interest rates for the first time since the end of the financial crisis in 2008 was widely seen as a vote of confidence in the world’s largest economy.
But major stock indexes around the world have been badly affected, despite efforts by the Bank of Japan and the European Central Bank to stimulate growth through lower interest rates.
MCX gold fell by 0.6 per cent, is trading around 29,600.
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