Gold Price extends drop, set for third straight weekly decline
San Francisco (May 1) Gold futures drifted lower Friday, extending losses from a sharp drop in the previous session and set for a third straight weekly loss as investors looked to the latest economic data to help gauge demand for the precious metal.
Gold for June delivery on Comex GCM5, -0.91% fell $10.50, or 0.9%, to $1,171.90 an ounce after losing a total of more than $30 over the past two trading sessions. Prices, tracking the most-active contracts, traded about 0.3% lower for the week, which would be their third straight weekly loss.
July silver SIN5, -0.95% dropped 14.3 cents, or 0.9%, to $16.01 an ounce, with prices poised for a gain of roughly 2% for the week.
Many European and Asian markets were closed Friday for a holiday.
Analysts said gold was seeing some follow-through selling pressure after it ended April with a whimper.
It dropped more than 2% on Thursday to leave the yellow metal with a 0.1% monthly loss, after a larger-than-expected drop in first-time claims for U.S. jobless benefits. Upbeat economic data can dull investment demand for gold.
Data released Friday showed that the Institute for Supply Management’s manufacturing index was flat at 51.5%. Consumer sentiment rose to a final April reading of 95.9 — matching a preliminary estimate, while construction spending fell 0.6% in March.
The ISM factory employment number was at its weakest point since September 2009, said Naeem Aslam, chief market analyst at AvaTrade. The ISM manufacturing and construction spending data came well below the forecast and that provided some support for gold, he said, with prices moving off the session’s lows.
The main support for gold is at $1,168 and a break of this level will open the floor toward the $1,140 level, said Aslam, adding that price resistance is at $1,220.
Read: Don’t be fooled by the rally in gold
In other metals trade, July platinum PLN5, -0.89% fell $6.80, or 0.6%, to $1,133.60 an ounce, set for a gain of about 1% for the week, while June palladium PAM5, -0.22% lost 35 cents, or 0.1%, to trade at $776.15 an ounce, trading up 0.8%.
July copper HGN5, +1.18% rose 3.95 cents, or 1.4%, to $2.927 a pound, with prices trading higher by more than 6% for the week.