Gold Futures Face Weekly Loss Despite Marginal Recovery
Gold futures experienced a slight gain on Friday following three consecutive sessions of decline. However, despite this small recovery, higher global bond yields and a stronger U.S. dollar in recent days have positioned the yellow metal for its second weekly loss in three.
Price Action
- Gold futures for December delivery (GC00, +0.16% GCZ23, +0.16%) rose by $1.50 or 0.1%, reaching $1,950 per ounce on Comex.
- Silver futures for September delivery (SI00, -0.20% SIU23, -0.20%) dropped by 4 cents or 0.2%, settling at $22.79 per ounce.
- Palladium futures for September delivery (PA00, +2.03% PAU23, +2.03%) climbed by $22.50 or 1.7%, reaching $1,328 per ounce. Similarly, platinum futures (PL00, +0.32% PLV23, +0.32%) for October delivery experienced a gain of $3.30 or 0.4%, settling at $918 per ounce.
- Copper futures for September delivery (HGU23, -1.85%) declined by 6 cents or 1.6%, reaching $3.71 per pound.
Market Drivers
According to market analyst Rupert Rowling from Kinesis Money, "Gold is continuing its slow slide toward $1,900 an ounce as doubts remain as to whether the Federal Reserve still has one more interest rate increase left in its current cycle, even following yesterday’s encouraging U.S. inflation data."
Despite Thursday's U.S. inflation report, gold prices have fallen this week due to concerns over potential reacceleration of inflationary pressures. Additionally, worries regarding the continued rise in Treasury yields and the U.S. dollar have weakened demand for the precious metal.
On Friday, the yield on the 10-year Treasury note remained flat at 4.105% after an increase on Thursday afternoon. San Francisco Fed President Mary Daly stated that the Fed still has work to do in taming inflation, despite the latest data showing a modest 0.2% rise in consumer prices for July.
Investors can anticipate another U.S. inflation update on Friday with the release of a gauge measuring wholesale price growth.
The ICE U.S. Dollar Index (DXY), which gauges the strength of the dollar against a basket of rivals, experienced a 0.1% decline to 102.46 on Friday.
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