Gold Suffers Biggest Weekly Loss In 3 Years on U.S.-China Trade Drama

Gold Suffers Biggest Weekly Loss In 3 Years on U.S.-China Trade Drama  | Nov 08, 2019 14:51

Gold Suffers Biggest Weekly Loss In 3 Years on U.S.-China Trade Drama

By Barani Krishnan – Global markets can’t decide where the U.S.-China negotiations are going, yet hopes for a trade deal remained alive on Friday, prompting gold to fall again for its biggest weekly loss in three years.

Gold futures for December delivery on New York’s COMEX settled down $3.50, or 0.2%, at $1,462.90 per ounce after plumbing three-month lows for a second-straight day at $1,457.10. For the week, it fell 3.2%, its most for a week since November 2016.

Spot gold, which tracks live trades in bullion, was down $5.31, or 0.4%, at $1,462.51 per ounce by 2:15 PM ET (19:15 GMT). Its session low was $1,456.33, a bottom since August 5.

“It's been a tough week for gold bugs,” TD Securities said in a note. “With algorithmic selling still the order of the day, which further saps liquidity from the market, the overextended long positions are in for more pain ahead.”

The Canadian bank-backed brokerage estimated that the weighted average breakeven entry price for longs on COMEX stood at $1,434 per ounce, suggesting more pain ahead.

“The fact that gold's preliminary open interest appears to have actually crept up, suggesting fresh shorts and sticky length, supports our view that more long liquidations could be ahead,” it said.

Still, not all might be lost for those still hopeful for a gold comeback, TD Securities said.

“An interesting point of note, our analysis of the weekly positioning deltas highlights that a significant amount of length has been accumulated in the $1,425/oz - $1,450/oz range, with an estimate of net 54,000 plus lots built in that region in the last year.”

On the U.S.-China trade front, President Donald Trump poured cold water on remarks from Chinese commerce minister Gao Feng a day ago that Beijing and Washington have agreed to phase out their tit-for-tat tariffs.

“They’d like to have a rollback, I haven’t agreed to anything,” Trump told reporters. “China would like to get somewhat of a rollback -- not a complete rollback, because they know I won’t do it.”

For added measure, White House economic adviser Larry Kudlow said after Gao’s remarks on Thursday that “if there’s a phase one trade deal, there are going to be tariff agreements and concessions.”

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.