Gold futures are still continuing their 2018 ways, taking a hit on a strengthening US dollar and unable to benefit from the Turkish crash. Gold prices are on track for a weekly loss as investors remain selling off the safe-haven asset.
December gold futures tumbled $1.00, or 0.08%, to $1,219.70 per ounce at 20:42 GMT on Friday. The yellow metal is poised for a weekly loss of 0.25%, adding to its 8.2% decline so far this year.
Silver, the sister commodity to gold, is cratering to finish off the trading week. September silver futures shed $0.15, or 1.00%, to $15.315 an ounce. The white metal will also record a weekly drop of 0.71%, contributing to its year-to-date 11% losses.
The greenback is surging as the US Dollar Index soared 0.73% to 96.26, its highest level in about a year. The buck is on track for an impressive weekly gain of 1.23%, bringing its YTD gains to just under 5%. A strengthening currency is generally bad for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.
With a plethora of positive economic data, the market widely anticipates the Federal Reserve to raise interest rates at next month’s Federal Open Market Committee (FOMC) policy meeting. The US central bank is expected to pull the trigger on two rate hikes, one in September and the other in December. This is likely driving the buck’s meteoric rise to complete the trading week, especially with widespread volatility around the world.
Despite being a safe-haven asset, gold was unable to take advantage of the financial crisis unfolding in Turkey and the market volatility transpiring in Russia.
Global markets are feeling the jitters after the Turkish lira cratered 20% following President Donald Trump’s announcement to double tariffs on the nation’s metals. The Dow Jones fell 200 points, the S&P 500 shed 20 points, and the NASDAQ slid 51 points. Turkish stocks are also crumbling as the iShares MSCI Turkey ETF declined 15%. Meanwhile, the European Central Bank (ECB) is frightened that too many European banks are exposed to Turkey’s economic collapse.
The rest of the metals market is seeing a sea of red. September copper futures dropped $0.023, or 0.83%, to $2.7425 per pound. September platinum futures slipped $4.60, or 0.55%, to $829.50 an ounce. September palladium futures were flat at $899.00 per ounce.
If you have any questions and comments on commodities today, use the form below to reply.
Best Clickbank Products