After nine straight weeks of gains, gold could be headed for a weekly dip. The yellow metal yo-yoed in a range of more than $100 since touching a record high just over a week ago.
This morning’s U.S. retail sales report initially dinged gold, with gold futures dropping to near $1,950, but it has since regained a bit of ground. Investors now await this morning’s industrial production data for July and second-quarter productivity statistics for further direction.
U.S. Retail sales rose 1.2% in July below the street’s expectation of a 2.3% and well below June’s 8.4% surge. The resurgence in Covid-19 cases caused reopening activities to slow. July’s sales actually beat the consensus, rising 1.9% when you remove the lackluster auto sales. Electronics and appliances led gains, with bars and restaurants also were up.
Gold futures rose 1.1% Thursday to settle at $1,970.40 an ounce Thursday on Comex. The December contract closed at a high of $2,069.40 on Aug. 6. They’re down 2.8% in the first four days of this week. The December contract is currently at down at $1,957.10 and the DG spot price is $1,953.30.
Silver futures gained 6.7% Thursday, the most in more than five years. The September contract settled at $27.72 an ounce on Comex. It’s up 0.7% so far this week. The most active contract soared 30% in July. The September contract is currently at down at $26.755, while the DG spot price is $27.11.
Prices rebounded Thursday following a sharp selloff earlier in the week, which was prompted by a strengthening dollar and an advance in U.S. bond yields. The moves sent investors seeking a haven against uncertainty to other assets than gold.
Precious metals have surged this year because of the coronavirus and its effects on the global economy.
The virus known as COVID-19 has killed more than 753,000 people worldwide and sickened 20.8 million. About 25% of the cases — and 22% of the deaths — are in the U.S. The country has 5.25 million cases, more than any other nation.
China’s economy continued to rebound in July, as industrial growth held steady from June and retail sales unexpectedly fell, according to data released Friday. The coronavirus originated in China and it was the first country to impose lockdowns in late 2019 and early 2020.
The weekly U.S. initial jobless claims report Thursday showed new applications for unemployment benefits by Americans dropped below 1 million for the first time since March, when pandemic lockdowns began.
Investors continued to watch a standoff between congressional Democrats and the White House over a proposed new coronavirus stimulus package. Stimulus efforts are typically bullish for precious metals. But any new measure is likely to wait until September at the earliest, CNN reported.
Spot palladium increased 2.3% Thursday to $2,197.20 an ounce. It’s up 1.8% in the first four days of this week. Spot platinum advanced 3.2% Thursday to $976.30 an ounce and is up 1.7% so far this week. Currently, the DG spot price for platinum is $971.00, while palladium is $2,169.40.
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