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Gold Futures Jump, Still on Track for Weekly Loss

April 27, 2018 at 14:49 by Andrew Moran

Gold futures are trading higher at the end of the trading week. Despite bullish economic numbers, positive geopolitical events, and a strengthening US dollar, the yellow metal is trying to build some momentum on Friday, though it is still poised for a weekly decline.

June gold futures rose $3.80, 0.29%, to $1,321.70 per ounce at 15:24 GMT on Friday. Gold prices are on track for a weekly loss of about 1.2% and they are flat on the year.

The white metal is edging lower to close the trading week. July silver futures tumbled $0.05, or 0.34%, to $16.51 an ounce. The sister commodity to gold will shed nearly 4% for the week.

According to the Bureau of Economic Analysis (BEA), gross domestic product (GDP) climbed 2.3% in the first quarter of 2018, beating market expectations of 2%. This helped the US dollar advance 0.29%, inching towards 92.0 on the index. A stronger buck is bad for commodities that are denominated in dollars because it makes it more expensive for foreign investors to purchase.

US Treasury yields could not sustain their multi-year highs on Friday. The 10-year Treasury note yield slipped 0.65%, falling below 3%, which is generally good for non-yielding bullion because it boosts demand in the short-term.

Markets also focused their attention on a historic meeting between the leaders of North Korea and South Korea. Kim Jong-un and Moon Jae-in signed a declaration to formally end the Korean War with a peace treaty and work towards a “complete denuclearization.” This is an important event prior to the upcoming meeting with President Donald Trump.

Investors will now look ahead to the next Federal Reserve policy meeting on interest rates, trade talks between US and Chinese officials, and the European Central Bank (ECB)’s gathering that could give hints as to when it will wind down its $3.2 trillion asset-buying program.

Other metal commodities were mixed on Friday. July copper futures slid $0.07, or 2.28%, to $3.04 per pound. July platinum futures rose $4.40, or 0.48%, to $914.50 per ounce. July palladium futures dipped $5.80, or 0.59%, to $973.25 an ounce.

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