Gold futures pulled back Friday, resuming their recent decline as technical pressure and concerns that the U.S. Federal Reserve will reconsider its quantitative easing program set prices up for a loss on the week.
Gold for delivery in April edged down by $4.10, or 0.3%, to $1,574.50 U.S. an ounce on the Comex division of the New York Mercantile Exchange, ready for a loss of around 2.1% for the week. If prices settled around this level, it would mark the lowest close since July 18, according to commodity watchers.
The precious metal had climbed 60 cents to settle at $1,578.60 U.S. an ounce Thursday, boosted by data showing a slowdown in U.S. manufacturing activity.
Thursday’s gain had snapped a five-session losing streak that saw gold fall through the key $1,600 U.S. level and tally a loss of nearly $72 an ounce.
Minutes from the Federal Reserve Open Market Committee’s January meeting released Wednesday raised concerns that the central bank would end its massive asset-buying program at an earlier date than expected. That would erode support for gold as an inflation hedge.
In addition, investors have turned to the U.S. dollar of late, which tends to depress the attractiveness of dollar-denominated commodities such as gold to holders of other currencies.
On Friday, the ICE dollar index , which measures the greenback against a basket of six other major currencies, edged up to 81.513, from 81.377 in late North American trading Thursday.
Silver futures for March delivery also fell 16 cents, or 0.6%, to $28.54 U.S. an ounce, trading 4.5% lower than a week ago.
March copper futures shed one cent, or 0.3%, to $3.54 U.S. a pound. It’s down more than 5% on the week.
April platinum futures lost $4.50, or 0.3%, to $1,615.20 U.S. an ounce, down 3.7% from a week ago. March palladium shed $3.75, or 0.5%, to $729.85 U.S. an ounce, set for a loss of 3.1% for the week. But both metals trade higher year to date.
Related Stories
