Gold futures logged their first weekly loss since June as higher Treasury yields impacted the metals market to close out the trading week. The yellow metal has been on a roller coaster ride as it hit an
December gold futures tumbled $20.20, or 1.03%, to $1,950.20 per ounce at 18:00 GMT on Friday on the COMEX division of the New York Mercantile Exchange. Gold prices will record a weekly slide of 4.7%, lowering their
Silver, the sister commodity to gold, is also bleeding red ink to end the trading week. September silver futures fell $1.583, or 5.71%, to $26.135 per ounce. The white metal will suffer a weekly drop of 8%, bringing its impressive YTD rally to below 46%.
The big development for metal commodities had been climbing Treasury yields that touched their best levels in two months. The benchmark 10-year Treasury yield traded at 0.703%, up from 0.562% from the same time a week ago. If investors can receive higher interest on an asset, they are more likely to hold bonds than
A weaker greenback capped gold’s loss on Friday. The US Dollar Index, which measures the buck against a basket of currencies, slipped 0.26% to 93.09, from an opening of 93.22. The index recorded a 0.35% weekly loss, adding to its decline of 3.4% so far this year.
But analysts are looking ahead to next week, forecasting that gold could reignite its rally based on disappointing US economic data. Retail sales rose 1.2%, falling short of the 1.9% market forecast. Industrial production dropped at an annualized rate of 8.2% in July, while manufacturing output contracted 7.7%
Overall, market observers believe gold could face a consolidation following the asset’s meteoric ascent.
In other metal commodities, September copper futures tacked on $0.0475, or 1.7%, to $2.855 a pound. September platinum futures shed $23.60, or 2.4%, to $959.40 per ounce. September palladium futures plummeted $72.40, or 3.27%, to $2,144.39 an ounce.
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