Gold Drops 0.2%, to $1,187.20 an Ounce

Gold

 

Gold futures, on Friday, January 27, slumped for a fourth day in a row, heading for a weekly loss of more than 1% as strength in the dollar weighed on demand, Marketwatch.

Gold for February delivery GCG7, -0.20% fell $2.60, or 0.2%, to $1,187.20 an ounce. Gold has posted declines each day since ending Monday at $1,215.60—its highest settlement since Nov. 17.

April gold GCJ7, -0.20% which trades with higher open interest, shed $2, or 0.2%, to $1,190.50 an ounce. Both contracts trade roughly 1.4% lower on the week.

March silver SIH7, +1.22% edged up by 14 cents, or 0.8%, to $16.99 an ounce, paring its weekly loss down to about 0.1%. It earlier traded in the red as well.

“Gold found itself exposed to painful losses this week after the renewed investor risk appetite from the [President Donald] Trump effect and dollar’s resurgence encouraged sellers to attack the metal incessantly,” said Lukman Otunuga, research analyst with FXTM.

U.S. stocks paused their run, which helped to limit precious metals’ downside Friday. Treasury yields extended their losses in the wake of weaker-than-expected U.S. economic data, also providing some support for non-yielding gold.

U.S. gross domestic product slowed to 1.9% in the fourth quarter. That means annual growth failed to reach 3% for the 11th-straight year, reflecting the hurdles the new Trump administration faces in trying to speed up a 7 ½-year-old expansion.

The economy expanded at a 3.5% pace in the late summer and early fall. A separate report showed durable-goods orders fell for a second straight month.

Meanwhile, the dollar advanced moderately against most rival s. The ICE U.S. Dollar Index DXY, +0.12% was up 0.1% at 100.51. Dollar and gold usually move inversely since a stronger U.S. currency cuts demand for dollar-priced gold from buyers using other currencies.

On Comex, March copper HGH7, +0.56% traded at $2.685 a pound, up 1.2 cents, or 0.4%—to trade around 2.3% higher for the week.

April platinum PLJ7, -0.12% fell $2.30, or 0.2%, to $979.40 an ounce, set for a weekly gain of about 0.4%. March palladium PAH7, +2.19% added $15.05, or 2.1%, to $739.50 an ounce, but was poised for a weekly loss of more than 6%.

Among the exchange-traded funds, the SPDR Gold Trust GLD, -0.10% was down 0.1%, ready to post a weekly loss of 1.6%. The iShares Silver Trust SLV, +1.37% added 1.9%, while the VanEck Vectors Gold Miners ETF GDX, +0.99% rose 1.5% during the session.

 

 

 

 

 

 

 

 

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