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Gold Suffers Sixth Straight Loss, Finishes at Six-Week Low

March 4, 2019 at 19:50 by Andrew Moran

Gold futures recorded their sixth consecutive loss to kick off the trading week. As prices tumbled to their lowest levels in six weeks, the metals market has not renewed investor interest, despite the cold spell in domestic stocks, geopolitical tensions, and weak economic data.

April gold futures tumbled $11.00, or 0.85%, to $1,288.20 per ounce at 18:23 GMT on Monday. Gold has not traded this low since the end of January. Last week, the yellow metal fell 2.5%, which put gold officially 0.2% in the red on the year.

Silver, the sister commodity to gold, is also sliding to start the new trading week. May silver futures declined $0.145, or 0.95%, to $15.11 an ounce. The white metal recorded a 4% drop last week, bringing its year-to-date losses to 3.2%.

Ostensibly, the precious metals are hurting on lower risk appetite among investors. With the US and China on the verge of reaching a historic trade deal, which would remove tariffs on $200 billion worth of Chinese goods, there is growing optimism in international markets. The latest reports suggest that Washington and Beijing could strike a formal trade deal by the end of March.

Although gold would benefit from an end to the trade spat because it would lift demand from the world’s second-largest economy, the yellow metal is pulling back on stronger equities and a rallying greenback.

The US dollar rose 0.34% to 96.71, increasing its YTD gains to 0.55%. Last week, the greenback posted a modest 0.1% gain. A stronger buck is bad for dollar-denominated commodities because it makes it more expensive for foreign investors to purchase.

On the data front, the disappointing gross domestic product (GDP), retail, and housing figures have not spooked investors as much as analysts had anticipated. If it did, then perhaps there would be surging safe-haven interest for gold.

In other metal markets, May copper futures dipped $0.025, or 0.83%, to $2.90 per pound. May platinum futures plunged $25.50, or 2.95%, to $838.20 an ounce. May palladium futures plummeted $22.20, or 1.47%, to $1,483.90 per ounce.

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