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Gold Flirts With $1,500 As Metal on Track for Steep Weekly Loss

September 27, 2019 at 12:14 by Andrew Moran

Gold futures are sliding at the end of the trading week, poised for a steep weekly loss of more than 1%. The yellow metal fell on mostly positive US economic data this week, as well as a strengthening greenback. But the political situation – at home and abroad – continues to weigh on global financial markets and offer a great deal of uncertainty.

December gold futures tumbled $14.80, or 0.98%, to $1,500.30 per ounce at 11:43 GMT on Friday on the Comex division of the New York Mercantile Exchange. Gold is set for a weekly decline of 1.5% and the yellow metal is down nearly 2% so far this month. Year-to-date, prices have surged 17%.

Silver, the sister commodity to gold, is also shedding its value to close out the trading week. November silver futures fell $0.34, or 1.9%, to $15.575 per ounce. The white metal is poised for a weekly drop of 2.6%, adding to its monthly loss of 5%.

In recent days, a myriad of economic data was greater than market expectations, especially in the housing sector.

According to the National Realtors’ Association, new home sales climbed 7.1% in August, higher than 3.5% market consensus. Pending home sales jumped 1.6%, beating the 0.9% forecast.

The bullish numbers revived life into a US dollar that has slumped as of late. On Friday, the greenback edged up 0.03% to 99.16, bringing its weekly increase to just under 1%. So far this year, the buck is up more than 3%. A stronger dollar is bad for dollar-denominated commodities because it makes it more expensive for foreign investors to purchase.

The movement of the dollar in recent sessions has been interesting because of the Federal Reserve easing monetary policy and being more accommodative. With most Federal Open Market Committee (FOMC) members anticipating at least one more rate cut this year, other central banks may follow suit and reduce rates even more as part of global efforts to stimulate the economy.

But politics is still driving immense uncertainty in every sector of the economy. Although high-level US-China trade talks have been officially scheduled for October 10, there are now questions regarding the state of the US administration now that impeachment is on the table. Experts doubt impeachment will happen, and the polls suggest that there is very little appetite for it among the public. But anytime impeachments floats around Washington, it incites panic in markets.

In other metal markets, November copper futures added $0.0125, or 0.48%, to $2.59 a pound. November platinum futures slipped $10.40, or 1.11%, to $925.70 per ounce. November palladium futures crumbled $17.40, or 1.06%, to $1,625.50 an ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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