On Friday, the precious safe-haven gold futures’ prices had edged lower after hitting its one-week lows and had marked up their second straight weekly decline in a row, as the American currency had regained its safe-haven bid following a sharp revival in business activities.
Nonetheless, although the gold futures had hit a one-week low of $1,910.99 an ounce earlier in the session, a number of Wall St. analysts had been quoted saying that the longer-term uptrend in gold prices remained intact amid growing uncertainty over the duration of the global pandemic outbreak.
If truth is to be told, Friday’s bullion in US Dollar greenback that in effect had hurt appetites for the safe-haven precious gold futures’ prices came against the backdrop of a cascade of upbeat US economic data including a surprise gain in business activities to their highest levels since early 2019, while gold futures’ prices had witnessed a weekly percentage decline of 0.3 per cent.
Gold ebbs off as US Dollar Index snaps eight-week long losing streak
Citing statistics, on Friday’s commodity market closure, spot gold futures’ prices tumbled 0.2 per cent to $1,939.64 an ounce after hitting an intra-session low of $1,910.99 an ounce, while the US Gold futures’ prices remained dithered at $1,947 per ounce.
For the week, gold has been down 3 per cent. Among other precious metals, silver futures’ prices were jolted 1.9 per cent to $26.71 per ounce, but reported a weekly percentage gain of 1 per cent, while platinum ended the session flatlined at $917.61 an ounce and palladium lost 0.2 per cent to curtain off the day at $2,177.32 per ounce.
Meanwhile, as the gold futures’ prices had sharply fallen from an above-$2,000 level hit earlier this week, referring to a growing uncertainty over the global commodity market that appeared to be reacting overwhelmingly during the recent past, a Standard Chartered analyst Suki Cooper wrote in a client note, “Prices have endured a roller-coaster week amid weak positioning, delayed stimulus package agreement, a bounce in the U.S.
dollar and real rates. Barring further profit-taking, we think the longer-term uptrend (for gold) is intact given our expectations for further U.S. dollar weakness and the scale of stimulus, and as we expect interest rates to remain low or negative.
” However, citing that the commodity traders were seeking for a clarity in a new-normal pandemic era, a Director at High Ridge Futures, David Meger said on the day’s commodity market wind down, “We're seeing some better than expected economic data in some facets, yet there clearly are still concerns in regards to the pandemic, in regards to the employment situation. ”