Weekly Round-Up: Gold Hits Two-Week Low

Gold buying from China stopped ahead of its week-long holiday to celebrate the Lunar New Year, and as a result gold futures were on track for the longest streak of losses since November.

“A combination of things including a strong dollar, thin volumes ahead of the Chinese (or Lunar) New Year and weak longs is putting pressure on the market,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Despite touching a two-month high on Monday, it’s been another tough week for the gold price, that reached a two-week low on Thursday supported by a strong dollar and a weak physical demand.

The metal is on track for a fourth straight loss, which would be the longest slump since October. However, in the first week of President Trump, expectations of a boost to growth have recently had a diminishing impact on the dollar. What’s more the Dow Jones Industrial Average climbed above 20,000 for the first time on Wednesday.

As of 11:54 a.m. EST on Friday, the gold price was $1,188.99 per ounce.

Looking over to the silver price, the white metal declined on Friday and was headed for their first weekly loss in five, as stronger risk appetite and profit-taking continued to weigh on precious metals.The Economic Calendar reported that the silver price was on track to lose nearly 2 percent.

As of 11:54 a.m. EST on Friday, the white metal was $17.11 per ounce.

Platinum fell 0.5 percent to $970.60. Palladium fell 0.3 percent to $718.83, after hitting its lowest since January 4 at $711.15 on Thursday.

On the base metals side, LME prices were up an average of 0.3 percent led by a 1 percent gain in nickel prices to $9,440 per tonne. Copper is the metal bucking the trend with a 0.2 percent decline in prices to $5,837 per tonne.

Lastly, spot oil prices dropped from a three-week high amid doubts that OPEC and other producers will make promised output cuts while drilling climbs in the U.S. Futures fell as much as 2.2 percent in New York after failing to extend Thursday’s 2 percent rally, bloomberg reported.

West Texas Intermediate for March delivery fell $1.07, or 2 percent, to $52.71 a barrel at 11:56 am EST on the New York Mercantile Exchange.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article. 

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