Economic news

Gold Futures Head Lower, as Metal Looks to Wrap May Trading

Gold futures skidded lower on Friday, extending their retreat beneath a psychologically important level at $1,900, but still headed for a weekly and monthly advance.

Investors were watching for further evidence of rising inflation and awaiting the Federal Reserve’s preferred measure of pricing pressures, the personal-consumption expenditure index due at 8:30 a.m. Eastern Time.

August gold the most active contract, dropped $11.70, or 0.6%, to $1,886.50 an ounce, following a 0.3% decline on Thursday to mark its first loss in four sessions.

Prices, based on the most-active contract, still trade more than 6% higher month to date and were looking at a weekly advance of 0.6%. On Wednesday, they settled atop $1,900 an ounce and turned positive for the year, a day after hitting a high near that resistance level.

Gold’s rise this week has been helped by a weak U.S. dollar, but the currency was gaining momentum higher early Friday, up 0.4%. A weaker dollar can make assets priced in that currency more attractive to overseas investors. For the week, the DXY is up 0.4%.

A slide in the yield on the 10-year Treasury note had also helped buoy gold buying. Falling yields can benefit precious metals and other commodities, which don’t offer a coupon, by reducing the opportunity cost of holding those assets against yield-bearing investments.

Source: Marketwatch

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree