Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Slips For 7th Straight Session To Hit 5-Year Low

Published 07/19/2015, 04:18 AM
Updated 01/22/2024, 02:07 PM

Gold futures slipped for a seventh straight session to end at a more than five-year low on Friday, after China for the first time revealed its gold reserves since 2009, which was below expectations. The prospect of an imminent rate hike from the Federal Reserve also dented gold's appeal as a hedge against inflation. Gold prices fell sharply lower earlier this week, as Fed Chair Janet Yellen delivered hawkish remarks and have since failed to rebound. Investors mulled over China's first revelation of its gold reserves since 2009. The People's Bank of China Friday said gold reserves in the country reached a record 1,658 tons as of June, 2015, up a near 60 percent from 1,054 tons in April 2009. However, the surge was below analysts' expectations, dragging gold prices down sharply. Gold for August delivery scaled an intraday high of $1,144.50 and a low of $1,129.60 an ounce. For the week, gold futures shed about 2.3 percent

In a slew of upbeat economic news, U.S. consumer prices rose in line with estimates in June, partly reflecting another notable increase in energy prices. In another upbeat sign for the housing market, a Commerce Department report on Friday showed significant increases in both housing starts and building permits in June. Nevertheless, a report from the University of Michigan on Friday said consumer sentiment in the U.S. pulled back in July, after having reported a substantial improvement in the previous month. On Thursday, gold prices dropped $3.50 or 0.3 percent, to settle at $1,143.90 an ounce, as investors mulled over the possibilities of a rate hike with a slew of upbeat economic data from the U.S. and remarks by the Fed Chief Janet Yellen pointing to an imminent hike this year.

Gold’s fall has failed to spur demand in top consumers in Asia, with domestic prices in No.2 market India remaining at a discount to global spot prices. Non-interest-bearing gold, which is on track for a third year of losses and down more than 3 percent so far, has been struggling ahead of an expected U.S. rate rise, which would increase the opportunity cost of holding the metal. The next target down for gold is the yearly S1 at 1111.9. If the market were to trade down to this level, look for a significant short covering rally, as we are heading into Indian Wedding season in the fall, where traditionally physical buying spikes.

Weekly Swing Chart

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.