Gold trading will be in focus today, after the yellow metal recorded its first weekly decline in ten weeks.
Context: Gold futures closed lower on Friday, with the metal also registering a loss during the week following some strength seen in US Treasury yields.
Details: Traders were keeping a close eye on economic reports from the US last week. Although the country’s retail sales fell short of expectations, data on US productivity and industrial production came in better than expected.
The yield on the US 10-year Treasury note traded at 0.693% on Friday, after jumping to its highest level in eight weeks in Thursday’s dealings and versus 0.562% last Friday.
Gold futures for December delivery dropped 1.1% to close at $1,949.80 an ounce on Friday, following a 1.1% rise on Thursday. The precious metal recorded a weekly decline of around 3.9%, snapping the nine-week winning streak. Last Tuesday, gold had also suffered its worst single-day dollar decline since April 15, 2013.
Meanwhile, silver prices dipped 5.9% to settle at $26.089 in the prior session, after climbing 6.7% on Thursday. The white metal lost 5.3% last week.
Among other metals, September copper rose 1.9% to reach $2.859 a pound on Friday, recording a weekly gain of 2.4%. However, October platinum declined 2.4% to $959.10 an ounce, shedding 1.2% in the week.
What to watch: Markets will focus on global economic reports and continue to assess the covid-19 numbers, with total cases surpassing 5.4 million in the US.
Gold is expected to rebound slightly today, following last week’s losses. Gold futures traded higher by 0.2% to $1,953.30 an ounce in European session.
Other Markets: European indices were trading lower at 8:30am GMT, with the FTSE 100, French 40 and Dax 30 index down by 0.2%, 0.1% and 0.2%, respectively.