Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ The decline of gold for the session, posted the first weekly loss since early June

The decline of gold for the session, posted the first weekly loss since early June



Gold futures ended lower on Friday, pulling after two straight days of gains, with prices registering their first weekly loss in the 10 weeks behind recent yields. US Treasury.

Week began with gold trading in record territory, but will end with “many factors weighing on the price of gold,” including hopes for a COVID-19 vaccine and rising Treasury yields, Chris said. Gaffney, president of World Markets at TIAA Bank. Higher yields on government debt are attributed to some of the softness in gold, which does not offer a yield.

10-year Treasury note issued TMUBMUSD1

0Y,
0.706%
on Thursday touched the highest in eight weeks. On Friday of the deal, it traded at 0.693% compared to 0.562% last Friday.

“The‘ carrying cost ’of gold is negative in the current environment because investors do not sacrifice the interest to bring hard assets like gold,” Gaffney told MarketWatch.

December gold GCZ20,
-0.94%
GC00,
-0.94%
rose $ 20.60, or about 1.1%, to settle at $ 1,949.80 an ounce, after rising 1.1% on Thursday. Gold prices saw a weekly decline of nearly 3.9%, based on the settlement of the most active contract last Friday, which earned a nine-week mark-up, according to FactSet data. On Tuesday, futures prices suffered the biggest daily dollar downturn since April 15, 2013.

Meanwhile, September silver price SIU20,
-5.00%
fell $ 1.63, or 5.9%, to end at $ 26.089, after surging 6.7% a day ago. Silver suffered a 5.3% weekly loss.


‘If a word can be used to describe this week’s gold price action, the best fit would be “crazy”.’


– Lukman Otunuga, FXTM

“If a word can be used to describe this week’s gold price action, the best fit would be ‘crazy’,” Lukman Otunuga, FXTM’s senior market analyst, told MarketWatch.

“After experiencing an intense earning session earlier in the week … the precious metal traded above $ 1,950,” he said.

“Investors remain attracted to the precious metal thanks to US-China tensions, the US stimulus stimulus and an unselected US dollar.”

Investors on Thursday also parsed economic reports in the US to help measure the impact of COVID-19 sensation on the national economy. A U.S. retail retail report rose 1.2% in July, appearing weaker than forecast.

U.S. retail sales exceeded expectations, “a sign that recovery is slowing worldwide,” Gaffney said. “This is why a vaccine is so important. Consumers do not feel very confident to travel and spend until they feel safe from the virus.”

The US sales report came after a 1.1% decrease in Chinese retail sales in July, compared to expectations for a flat reading.

Separately, a US productivity report rose at an annual rate of 7.3% in the second quarter, far above expectations for a reading of 1.4%, based on average estimates from economists polled by MarketWatch. Industrial production rose a better-than-expected 3% in July, for the third straight monthly gain.

Going forward, gold traders will continue to monitor the “possible outbreak of a ‘second wave’ of the virus across Europe and Asia,” as well as interest rates, as gold will benefit if interest rates will remain low, Gaffney said. Entrepreneurs will also be able to watch economic stimulus talks and the resulting interest in debt levels, he said.

Other metals traded in Comex Thursday, Soviet copper HGU20,
+ 1.71%
covered nearly 1.9% to $ 2,859 a pound, for a weekly increase of 2.4%. October platinum PLV20,
-2.26%
fell 2.4% to $ 959.10 an ounce, lost 1.2% for the week, and the September palladium PAU20,
-3.14%
lost 3.3% to $ 2,143.80 an ounce – down 1.5% from last week.


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