Gold pared the first back-to-back weekly climb since January as investors weighed a higher U.S. dollar against demand for a haven after Saudi Arabia and its allies started bombing targets in Yemen.
Bullion for immediate delivery fell as much as 0.4 percent to $1,200.10 an ounce and was at $1,201.91 by 11:07 a.m. in Singapore, paring this week’s gain to 1.6 percent, according to Bloomberg generic pricing. The metal rallied to $1,219.79 on March 26, the highest level since March 2, as it capped the longest run of advances since 2012. Gold traded in Shanghai headed for its first weekly advance in seven.
Investors have historically turned to precious metals in times of geopolitical tension. Gold was set for the first quarterly gain since June as the Saudis headed a coalition of 10 Sunni-ruled nations that carried out raids around Yemen’s capital. Saudi Arabia’s southern neighbor is near the center of world energy trade, and oil is poised to post the biggest weekly gain since 2011 amid concern supplies may be disrupted. The Bloomberg Dollar Spot Index rose the most in a week on Thursday.
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