Gold futures on Friday were on a positive footing, heading for the highest settlement for the contract in a week, despite a slight weekly loss. Strategists say that gold has been whipsawed in recent weeks by uncertainty about the strength of the economic rebound amid the spread of the delta variant of COVID-19, bullish for bullion, and talk of the Federal Reserve tapering its pandemic-era accommodations sooner than later, which would weigh on prices.
The precious metal trade also has come against the backdrop of equity buying that has taken the Dow Jones Industrial Average
and the S&P 500
on a series of record-high closes, which reflects slack in demand for haven. “Gold has been caught in the crossfire,” wrote Victor Argonov, senior analyst at Exante, in a Friday note. “Although the current central bank policy measures should be supporting prices, the relative strength of the dollar is applying headwinds for gold, while the rallying stock markets means haven demand for precious metal is also not as strong as last year,” the analyst wrote. December gold
was trading $8.40, or 0.5%, higher at $1,760.20 an ounce, following a 0.1% decline on Thursday. For the week, the metal is set for a decline of about 0.2%, based on the most-active contract. Meanwhile, silver for September delivery
traded 24 cents, or 1%, higher at $23.36 an ounce, following a 1.6% decline in the previous session. For the week, gold’s sister metal has lost 4%. The dollar also has checked moves in precious metals because it has been up 0.1% so far this week, as gauged by the ICE U.S. Dollar Index
Meanwhile, the 10-year Treasury note
yield was up by over 5 basis points on a weekly basis to around 1.34%.