Gold Settles Slightly Higher, But Sheds 2.9% In The Week
Gold prices moved in a very tight range on Friday, as traders, looking ahead to next week's trade talks between the U.S. and China, mostly stayed wary of building up positions.
Despite a marginal gain today, gold posted its sixth consecutive weekly decline as the greenback hovered around 14-month highs for most part of the week.
With the Fed almost certain to hike interest rates twice this year, one in September and the other after the subsequent policy meeting, the dollar has been staying firm.
Gold futures for December ended at $1,184.20, gaining $0.20, or 0.017% for the session. Gold lost 2.9% in the week, the largest weekly drop in nearly 15 months.
On Thursday, gold futures for December ended down $1.00, at $1,184, recovering from a low of $1,167.40. September gold futures tumbled to a 20-month low of $1,160.10 yesterday before regaining most of the lost ground.
Silver futures for September declined $0.082 to $14.631 an ounce, while Copper futures ended up $0.0125 at $2.629 per pound.
The dollar index was down 0.30 points or 0.31%, at 96.18.
The lira tumbled against the dollar as worries about U.S.-Turkey tensions rose after Turkey's trade minister, Ruhsar Pekcan, said her government would respond to any new trade duties.
Meanwhile, traders awaited the next developments in the U.S-China trade battle. According to reports, U.S.-China trade talks in Washington would take place on August 21 and 22, just before the next round of levies targeting $16 billion worth of goods on both sides kick in on August 23.
In U.S. economic news, a report from the University of Michigan unexpectedly showed a notable deterioration in U.S. consumer sentiment in the month of August. The report said consumer sentiment index dropped to 95.3 in August after edging down to 97.9 in July. Economists had expected the index to inch up to 98.0.
Meanwhile, a separate report from the Conference Board said its leading economic index climbed by 0.6% in July following a 0.5% increase in June. Economists had expected the index to rise by 0.4%.