Home / Forex Analysis / Gold Futures Extend Winning Streak To 4th Day

Gold Futures Extend Winning Streak To 4th Day

Gold futures gave up most of their gains and ended just marginally higher on Friday, as the dollar gained in strength against most major currencies after data showed a notable improvement in U.S. retail sales in the month of May.

The dollar index rose to 97.58, gaining nearly 0.6%.

Gold futures rose to $1,362.20 an ounce earlier in the session, and looked poised to settle at a fourteen-month high.

Gold futures for August eventually settled at $1,344.50 an ounce, up just $0.80, or about 0.1%, from previous close.

On Thursday, gold futures for August ended up $6.90, or 0.5%, at $1,343.70 an ounce. For the week, gold futures shed about 0.1%.

Silver futures for July ended down $0.089, at $14.803 an ounce, while Copper futures for July settled lower by $0.0270, at $2.6295 per pound.

The yellow metal’s uptick earlier in the session was due to traders’ preference for the safe haven asset amid rising concerns over tensions in the Middle East where a couple of oil tankers were attacked earlier in the week, and worries about global economy after data showed a slowdown in Chinese industrial output growth.

Geopolitical tensions heightened, with the Trump administration blaming Iran for an attack on two oil tankers at the mouth of the Persian Gulf.

“These unprovoked attacks present a clear threat to international security, a blatant assault on the freedom of navigation, and an unacceptable campaign of escalating tension by Iran,” U.S. Secretary of State, Mike Pompeo told reporters.

The U.S. military has released a video showing what it claimed was Iran’s Revolutionary Guard removing an unexploded limpet mine from one of the oil tankers targeted near the key waterway.

In economic news, China’s industrial output growth slowed to a more than 17-year low of 5% in May amid an escalating trade war with the United States.

In U.S. economic news today, Data from the Commerce Department showed that retail sales climbed by 0.5% in May after rising by an upwardly revised 0.3% in April.

Economists had expected retail sales to increase by 0.6% compared to the 0.2% drop originally reported for the previous month.

A report from the Federal Reserve said U.S. industrial production rose by more than expected in the month of May, climbing by 0.4%, following a revised 0.4% decrease in April.

Industrial production had been expected to edge up by 0.2% compared to the 0.5% drop originally reported for the previous month.

Markets now await a two-day policy meeting by the Federal Reserve next week. The press conference by Fed Chair Jerome Powell is likely to grab attention for clues about rate cut amid slowing global growth due to rising trade tensions with China.

The material has been provided by InstaForex Company – www.instaforex.com