Metals Stocks: Gold retreats, on track for lowest settlement in nearly 2 weeks

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Markets/commodities reporter

Gold prices fell in Friday trading, putting the yellow metal on track to book its lowest settlement in nearly two weeks, a day after the commodity snapped a two-session skid as concerns about global trade were relegated to the back burner.

August gold GCQ8, -0.30% lost $4.10, or 0.3%, at $1,242.50 an ounce, aiming for its lowest settlement since July 2. Earlier, prices sank to as low as $1,236.20, which would’ve been the lowest for a most-active contract July 2017, according to FactSet data, based on the daily settlements. The contract was set for a 1% weekly decline.

A popular fund tracking gold, the SPDR Gold Shares GLD, -0.41% was on pace to fall by about 1.1% this week.

A stronger dollar—which has drawn haven demand amid the clash over trade between the U.S. and China and pushed higher on rising-rate expectations—has been the most significant headwind for gold. A strengthening greenback can make commodities linked to the monetary unit, such as gold, more expensive to buyers using other currencies.

Indeed, the ICE U.S. Dollar Index DXY, -0.01% a measure of the buck against a half-dozen monetary units, has gained 0.9% thus far this week.

“The bearish price action witnessed in recent weeks despite the growing risk aversion continues to suggest that gold is still losing its safe-haven allure,” wrote Lukman Otunuga, research analyst at FXTM, in a Friday note. “Bulls have simply failed to garner any support from global trade concerns and this continues to be reflected in prices.”

Meanwhile, September silver SIU8, -0.67% shed 15.2 cents, or 1%, to $15.825 an ounce. Gold’s sister metal was eyeing a weekly decline of 1.5%, with the metal dogged by a downturn in industrials metals on the back of tariff tensions and a retreat for precious metals.

September copper HGU8, +0.11%  traded nearly flat at $2.778 a pound, but was poised for a weekly loss of about 1.7%. October platinum PLV8, -2.07%  shed 2.1% to $829 an ounce, trading 2.3% lower on the week, while September palladium PAU8, -1.57%  traded at $932.10 an ounce, losing 1.8% on the day, and down 1.6% for the week so far.

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