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Gold futures settled in negative territory Monday as the U.S. dollar gained ground, weighing on the precious metal that has been hovering near 2018 lows.
December gold GCZ8, +0.13% closed $5.50, or 0.4%, lower at $1,217.70 an ounce, after prices for the most-active December contract logged a weekly loss of roughly 0.8% to close out Friday trade. That was the fourth straight weekly decline for the metal.
September silver SIU8, +0.27% meanwhile, shed 11.4 cents, or 0.7%, to settle at $15.348 an ounce. The commodity booked a 0.2% loss for the week ended Friday.
The yellow metal’s decline comes as the buck, as gauged by the U.S. ICE Dollar Index DXY, -0.21% was trading up by about 0.2%. A stronger dollar can make gold, and other dollar-pegged commodities, more expensive to buyers using other currencies.
Trading in commodities have come amid a focus on global trade tensions, which have helped to buoy the dollar and pressure gold and silver lower.
On Friday, China threatened to impose tariffs, ranging from 5% to 25%, on $60 billion of U.S. goods. The penalties would come in addition to tariffs on $50 billion in U.S. goods which Beijing already imposed or said it would impose.
Among the popular metals ETFs, the SPDR Gold Trust GLD, +0.34% lost 0.3% on the day, while the iShares Silver Trust SLV, +0.45% was trading 0.5% lower.
“Sentiment is very negative on metals,” wrote Mark Newton, market technical analyst, with Mark Newton Advisors, in an Aug. 3 research note. He says silver may be showing some evidence of turning a corner after it was pummeled with gold, although he wants to see more confirmation.
Peter Cardillo, chief market economist at Manhattan-based investment advisory firm Spartan Capital Securities, said gold is maintaining a bearish trend. “The price of the metal remains under a bear hug that has yet to run its course. However, he said increasing debt levels in the U.S. could offer the metal some respite but didn’t specify a time. “We are patiently awaiting an entry point,” Cardillo said.
Elsewhere on Comex, September copper HGU8, +0.77% lost 3.2 cents, or 1.2%, to end at $2.7315 a pound, after shedding 1.4% last week. Because of its use as a industrial metal, copper has been particularly influenced by vacillating trade-war concerns.
October platinum PLV8, +0.80% gave up $10.60, or 1.3%, at $826.30 an ounce, following a weekly gain of around 0.6%, while September palladiumPAU8, +0.54% fell $4.30, or 0.5%, to finish the session at $903.60 an ounce, after futures declined 1.2% last week.
Source: https://www.marketwatch.com/story/gold-stumbles-to-start-the-week-as-dollar-edges-higher-2018-08-06