Gold futures fell for a seventh straight session on Friday, heading toward their lowest settlement level in more than five years.
Traders attributed the latest drop to a large seller on Comex, as the market digests news that China released data on its gold reserves for the first time since 2009.
Gold for August delivery on Comex fell $9.80, or 0.9%, to $1,134.10 U.S> an ounce, and was on track for a 2% weekly decline. A settlement around this level would be th e lowest since April 2010, based on the most-active contracts.
September silver fell 15.4 cents, or 1%, to $14.83 U.S. an ounce, viewing a 4.2% weekly drop.
The selloff comes on a day when the People’s Bank of China published its gold reserves for the first time in roughly six years. As of June, China’s official gold reserves were at 53.32 million ounces, or 1,658 metric tons. The last reported figure in April 2009 was 1,054 metric tons, according to Norman.
Prices for gold have posted declines over the last six sessions. Expectations for a U.S. Federal Reserve interest-rate hike later this year were bolstered by congressional testimony this week by Chair Janet Yellen. Higher interest rates tend to support the dollar and a stronger dollar is typically seen as a negative for commodities priced in the currency.
Meanwhile, progress toward completing a bailout deal for Greece robbed gold of haven demand. Germany’s lower house of parliament on Friday backed the plan, a day after Greek lawmakers passed strict measures that were a prerequisite for the deal.
In other metals trade, October platinum fell $13.70, or 1.4%, to $997.90 U.S. an ounce, on pace for a weekly fall or 3.3%, while September palladium lost $14.20, or 2.3%, to $617.75 U.S. an ounce, with the metal looking at a 5% weekly decline.
September copper fell 2.5 cents, or 1%, at $2.498 U.S., with a 1.6% weekly fall in sight.
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