By Myra P. Saefong and Joseph Adinolfi
Gold ended Friday at its lowest price in just over three weeks, down a fifth straight session to mark its longest losing streak since early July, as rising Treasury yields and a resurgent U.S. dollar undermined support.
December gold futures /zigman2/quotes/210039517/delayed GCZ22 -0.07% lost $8.30, or 0.5%, to settle at $1,762.90 per ounce on Comex with most-active contract at its lowest finish since July 28. Prices marked weekly loss of 2.9%, according to Dow Jones Market Data.
September silver declined by 39 cents, or 2%, to $19.069 per ounce, for a weekly loss of 7.9%, the largest since January.
Palladium futures for September delivery shed $18, or 0.8%, to $2,131.40 per ounce, with prices down 4% for the week. Platinum futures /zigman2/quotes/228424980/delayed PLV22 -0.45% for October delivery retreated $16.90, or 1.9%, to $888 per ounce, posting a weekly loss of 7.4%.
September copper added 3 cents, or 0.9%, to $3.6645 a pound, with prices down 0.1% for the week.
What analysts are saying
Gold’s month-long rally hit a wall this week as higher Treasury yields and a rising dollar spoiled the party, leaving the yellow metal below the $1,800 per ounce level. Most-active gold futures contract mark their worst weekly percentage decline since the week ended July 8.
Gold fell on Friday as the dollar continued to see strong support, said Craig Erlam, senior market strategist at OANDA. “The resurgence in the greenback has weighed heavily on the yellow metal, which was already seeing profit-taking after reaching $1,800.”
The ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY -0.59% , a gauge of the dollar’s strength against a basket of other currencies, was up 0.5% to top 108 for the first time in a month on Friday, while the yield on the 10-year Treasury note /zigman2/quotes/210369575/delayed TY00 -0.64% climbed 9.7 basis points to 2.975%.
Chintan Karnani, director of research at Insignia Consultants, told MarketWatch that gold prices may sell off more on Monday, before Federal Chairman Jerome Powell’s speech next week at the annual symposium in Jackson Hole, Wyo., if spot gold prices trade below $1,750.
Physical gold demand in Asia would have to “see a big rise next week for gold prices to reverse and retest $1,800,” he said. “Demand will rise only when there is a perception that gold prices are more or less nearing a bottom.”