Gold extends bearish skid, at risk of marking worst losing streak in nearly 5 months
London (JUne 28) Gold futures retreated early Thursday and were on pace to notch a fourth consecutive loss, underlining a downtrend that has taken hold of the precious metal that has been walloped by recent momentum in the U.S. dollar.
August gold GCQ8, -0.25% was trading down $2.30, or 0.2%, to $1,253.70 an ounce, on track for its lowest settlement since mid-December and registering the lengthiest selloff for a most-active contract since a four-day slide ended Feb. 7, according to FactSet data.
The most popular exchange-traded fund that tracks gold, the SPDR Gold Shares GLD, -0.57% has fallen 1.5% so far this week and was looking at a 3.7% drop in June, along with a 4.1% year-to-date retreat.
The dollar-pegged commodity has decidedly turned lower even as uncertainty over global growth and anxieties about escalating trade tensions—factors that would typically provide a lift for the commodity—have intensified.
Bullion has lost 1.3% so far this week, 3.9% so far in June and 4.3% thus far in 2018. Meanwhile, the closely watched equity benchmark, the Dow Jones Industrial Average DJIA, -0.68% which tends to climb as gold falls, has shed 1.9% this week, and is on track for a monthly and year-to-date decline of 1.2% and 2.4%, respectively.
The current dynamic in gold has led some investors to wonder if the precious metal has lost its efficacy as a traditional haven asset.
The dollar, as measured by the ICE U.S. Dollar Index DXY, -0.11% has been often cited as the greatest headwind for the yellow metal. The index boasts a weekly gain of 0.7%, 1.2% so far in June and is on track for a 3.3% advance this year.
“Gold has been in decline since April, and if the negative move continues it could target $1,250,” wrote David Madden, market analyst at CMC Markets UK in a Wednesday research note.
Elsewhere, September silver SI1, -1.66% the most active contract, was giving up 10 cents, or 0.6%, at $16.140 an ounce. Silver is poised for a weekly decline of 2.6% and a monthly slide of about 2.5%.
The most popular exchange-traded fund that tracks gold, the SPDR Gold Shares GLD, -0.57% has fallen 1.2% so far this week and was looking at a 3.4% drop in June.
MarketWatch
