LONDON, June 2: Gold had a rollercoaster ride on Friday, dipping overnight to a five-week low, bouncing back with a sharp drop in the dollar on weaker-than-expected jobs data and then eroding gains on profit-taking.
Market players were seeking clear direction and analysts said prices might drop further in the near term before start rising again towards recent highs.
After falling by about $60 in the last few days, it looks like a natural bounce, said John Meyer, analyst at Numis Securities.
Gold is following the dollar to some extent. I see a period of consolidation before the rise, he added.
Spot gold fell as low as $618.50 an ounce in Asia before rebounding to $638.60. It was quoted at $632.90/633.70 by 1413 GMT, against $626.30/627.10 in New York late on Thursday.
Gold was also lifted by a rise in oil, which climbed back above $71 a barrel, as the kidnapping of foreign oil workers in Nigeria and problems at two US refineries renewed concern about risks to supply.
Bullion had came under pressure earlier this week as oil dipped after the US offered to start talks with Iran, but Tehran said it would not agree to Washington’s condition that it halt uranium enrichment.—Reuters
