By STEPHANIE YANG and IRA IOSEBASHVILI
Updated Aug. 12, 2016 2:42 p.m. ET
0 COMMENTS
Gold prices closed lower Friday, reversing earlier gains from a lackluster retail sales number.
Gold for December delivery settled down 0.5% at $1,343.20 a troy ounce on the Comex division of the New York Mercantile Exchange, after trading as high as $1,362.50 in the session.
George Gero, managing director at RBC Wealth Management, said prices were likely weighed down by outflows from gold exchange-traded funds as well as traders closing out long positions ahead of the weekend.
“It’s a very thin, limited summer audience,” Mr. Gero said. “Just a few orders can easily move the market.”
However, broader markets continue to paint a bullish picture for gold, analysts say. The precious metal gained on a weaker economic outlook Friday morning, after data from the Commerce Department showed that U.S. retail sales were flat in July.
Uneven growth in the U.S. has some market participants doubting whether the economy is strong enough to bear an interest-rate increase. Expectations of continued low rates tend to buoy gold, which pays its holders nothing and struggles to compete with yield-bearing investments when borrowing costs rise.
“The U.S. economy doesn’t feel very strong,” said Peter Hug, global trading director at Kitco Metals. “It just doesn’t look like the Fed will raise rates anytime soon.”
Bets on federal-funds futures, a popular vehicle for traders to express views on the central bank’s policy outlook, showed that investors assigned a 6% likelihood of the Fed raising rates in September, down from 12% the previous day, according to CME Group data.
By STEPHANIE YANG and IRA IOSEBASHVILI
Updated Aug. 12, 2016 2:42 p.m. ET
0 COMMENTS
Gold prices closed lower Friday, reversing earlier gains from a lackluster retail sales number.
Gold for December delivery settled down 0.5% at $1,343.20 a troy ounce on the Comex division of the New York Mercantile Exchange, after trading as high as $1,362.50 in the session.
George Gero, managing director at RBC Wealth Management, said prices were likely weighed down by outflows from gold exchange-traded funds as well as traders closing out long positions ahead of the weekend.
“It’s a very thin, limited summer audience,” Mr. Gero said. “Just a few orders can easily move the market.”
However, broader markets continue to paint a bullish picture for gold, analysts say. The precious metal gained on a weaker economic outlook Friday morning, after data from the Commerce Department showed that U.S. retail sales were flat in July.
Uneven growth in the U.S. has some market participants doubting whether the economy is strong enough to bear an interest-rate increase. Expectations of continued low rates tend to buoy gold, which pays its holders nothing and struggles to compete with yield-bearing investments when borrowing costs rise.
“The U.S. economy doesn’t feel very strong,” said Peter Hug, global trading director at Kitco Metals. “It just doesn’t look like the Fed will raise rates anytime soon.”
Bets on federal-funds futures, a popular vehicle for traders to express views on the central bank’s policy outlook, showed that investors assigned a 6% likelihood of the Fed raising rates in September, down from 12% the previous day, according to CME Group data.
By STEPHANIE YANG and IRA IOSEBASHVILI
Updated Aug. 12, 2016 2:42 p.m. ET
0 COMMENTS
Gold prices closed lower Friday, reversing earlier gains from a lackluster retail sales number.
Gold for December delivery settled down 0.5% at $1,343.20 a troy ounce on the Comex division of the New York Mercantile Exchange, after trading as high as $1,362.50 in the session.
George Gero, managing director at RBC Wealth Management, said prices were likely weighed down by outflows from gold exchange-traded funds as well as traders closing out long positions ahead of the weekend.
“It’s a very thin, limited summer audience,” Mr. Gero said. “Just a few orders can easily move the market.”
However, broader markets continue to paint a bullish picture for gold, analysts say. The precious metal gained on a weaker economic outlook Friday morning, after data from the Commerce Department showed that U.S. retail sales were flat in July.
Uneven growth in the U.S. has some market participants doubting whether the economy is strong enough to bear an interest-rate increase. Expectations of continued low rates tend to buoy gold, which pays its holders nothing and struggles to compete with yield-bearing investments when borrowing costs rise.
“The U.S. economy doesn’t feel very strong,” said Peter Hug, global trading director at Kitco Metals. “It just doesn’t look like the Fed will raise rates anytime soon.”
Bets on federal-funds futures, a popular vehicle for traders to express views on the central bank’s policy outlook, showed that investors assigned a 6% likelihood of the Fed raising rates in September, down from 12% the previous day, according to CME Group data.
By STEPHANIE YANG and IRA IOSEBASHVILI
Updated Aug. 12, 2016 2:42 p.m. ET
0 COMMENTS
Gold prices closed lower Friday, reversing earlier gains from a lackluster retail sales number.
Gold for December delivery settled down 0.5% at $1,343.20 a troy ounce on the Comex division of the New York Mercantile Exchange, after trading as high as $1,362.50 in the session.
George Gero, managing director at RBC Wealth Management, said prices were likely weighed down by outflows from gold exchange-traded funds as well as traders closing out long positions ahead of the weekend.
“It’s a very thin, limited summer audience,” Mr. Gero said. “Just a few orders can easily move the market.”
However, broader markets continue to paint a bullish picture for gold, analysts say. The precious metal gained on a weaker economic outlook Friday morning, after data from the Commerce Department showed that U.S. retail sales were flat in July.
Uneven growth in the U.S. has some market participants doubting whether the economy is strong enough to bear an interest-rate increase. Expectations of continued low rates tend to buoy gold, which pays its holders nothing and struggles to compete with yield-bearing investments when borrowing costs rise.
“The U.S. economy doesn’t feel very strong,” said Peter Hug, global trading director at Kitco Metals. “It just doesn’t look like the Fed will raise rates anytime soon.”
Bets on federal-funds futures, a popular vehicle for traders to express views on the central bank’s policy outlook, showed that investors assigned a 6% likelihood of the Fed raising rates in September, down from 12% the previous day, according to CME Group data.
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