Gold Ends Week at 5-1/2-Year Low; US Mint Gold Sales Soar
New York (July 26) Gold futures on Friday declined for the eleventh time in twelve sessions, closing near a 5-1/2-year low and registering their fifth straight weekly loss.
Gold for August delivery shed $8.60, or 0.8%, to settle at $1,085.50 an ounce on the Comex division of the New York Mercantile Exchange. The close marks the lowest price since Feb. 10, 2010 when gold ended at $1,076.30 an ounce.
"The mood is very poor," Bloomberg News quoted Grant Sporre, an analyst at Deutsche Bank AG. "The feeling is that the metals are pricing in rate cuts in the U.S., but I expect that we’ll still see a further leg down when the event actually occurs."
Gold prices plunged 4.1% on the week after dropping 2.3% last week, and they are down 8.3% since their final settlement in 2014 at $1,184.10 an ounce.
"Rising nominal rates and disinflation have created the most bearish cocktail for gold in the past 43 years," Bank of America said in a note according to Reuters. "As such, we reiterate our view that gold prices are unlikely to rally into a Fed tightening cycle and now believe gold could dip below $1,000 an ounce by 2016."
Looking ahead to next week, Kitco News offers the following forecasts via their Wall Street vs. Main Street survey:
"This week, Kitco News saw the highest participation in its online weekly gold survey since it launched in April, with 555 participants. According to the results, 416 participants, or 75%, are bearish on gold next week. At the same time, 99 people, or 18%, are bullish. Seven voters, or 40%, are neutral on the yellow metal.
Kitco’s market professional survey was a lot closer, hitting a statistical tie once again, with a slight edge going to the bearish camp. Out of 34 market experts contacted, 20 responded, of which eight, or 40%, said they expect to see higher prices next week. At the same time, nine professionals, or 45%, said they see lower prices, and three people, or 15%, are neutral on gold."
Elsewhere in precious metals dealings, silver futures registered their ninth loss in ten sessions. Silver for September delivery fell 21 cents, or 1.5%, to settle at $14.49 an ounce. Silver prices slipped 2.3% on the week after sinking 4.2% last week, and they are off 7.1% on the year.
In PGM futures on Friday and for the week:
◾October platinum dipped 40 cents to $980.70 an ounce, sliding 2.1% from a week ago.
◾Palladium for September added $4.75, or 0.8%, to $622.60 an ounce, gaining 0.6% on the week.
The two metals on the year so far have logged respective losses of 18.9% and 22.2%.