Home Gold Price Gold prices set for first weekly decline in 10

Gold prices set for first weekly decline in 10

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(Reuters) – Gold fought for traction on Friday as a jump in U.S. Treasury yields forced investors to reassess their positions again after a steep retreat from a record peak earlier this week, which put bullion on course for its first weekly fall since early June. FILE PHOTO: Gold bars at the Austrian Gold and Silver Separating Plant ‘Oegussa’ in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File PhotoSpot gold was down 0.1% at $1,952.01 an ounce by 0356 GMT. Bullion declined 4% so far this week, its biggest weekly percentage fall since early March. U.S. gold futures fell 0.5% to $1,960.50. “Gold is coming under pressure due an uptick in U.S. yields, which is causing a little bit of sell-off right now,” said Edward Meir, an analyst at ED&F Man Capital Markets. Benchmark U.S. 10-year yields are up nearly 15 basis points this week in the sharpest jump since early June, as the U.S. Treasury flooded the market with supply. Higher yields tend to lift the dollar and pressure the yellow metal, which costs to store and insure but does not pay interest. The dollar drifted higher on strong U.S. jobs data, denting gold’s appeal. Bullion also largely ignored mixed economic data from top consumer China. Markets kept a wary eye on a stalemate in Washington over a new stimulus package, with key U.S.-China trade talks on Aug. 15 also on the radar. Gold has risen more than 28% this year, as unprecedented global stimulus to ease the economic blow from the pandemic pushed investors to bullion as a hedge against possible inflation and currency debasement. “The longer-term uptrend is intact, given USD weakness and the scale of stimulus and as we expect interest rates to remain low or negative,” Standard Chartered analysts said in a note. “Price dips are likely to be viewed as buying opportunities as the macro backdrop remains favourable for gold.” Elsewhere, silver dropped 1.1% to $27.26 per ounce, set to snap a 9-week-long winning streak, down 3.7% so far. Platinum fell 0.3% to $954.05 and palladium slipped 0.9% to $2,148.56. Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-PhillipsOur Standards:The Thomson Reuters Trust Principles.



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