2020.08.2110:46:00UTC+00Gold Dips As Dollar Rebounds

Gold prices were moving lower on Friday as a rebounding dollar dented bullion's appeal and set it on track for a second weekly decline.

Spot gold fell 0.7 percent to $1,933.68 per ounce, and was slightly lower so far this week, after having fallen as much as 4.5 percent in the week to Aug. 14, its worst in five months. U.S. gold futures were down 0.3 percent at $1,940.20.

The dollar rose against basket of currencies after euro zone economic data showed the region's economic recovery from its deepest downturn on record stalled this month.

The euro area private sector grew at a slower pace in August following a rebound from the downturn caused by the coronavirus pandemic, flash survey data from IHS Markit showed.

The composite output index fell unexpectedly to 51.6 in August, while the score was expected to remain unchanged at 54.9.

The minutes from the ECB meeting on 15-16 July released on Thursday showed that there was a clear sense of concern over the near-term outlook for the economy and about the course of the coronavirus pandemic.

Geopolitical tensions also remain in focus after the Trump administration reportedly declined to acknowledge any plans to meet with China over the Phase 1 trade deal.