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Gold and silver futures on Friday settled sharply lower, registering the biggest weekly slides for the commodities since late September, as prices has been buffeted by upbeat news on coronavirus vaccines that have driven investors to equities and away from the perceived haven of bullion.
Metals markets closed an hour earlier than usual on Friday, after the U.S. markets were closed for the Thanksgiving holiday on Thursday.
“The breakdown of the support level of $1,850 has damaged the medium-term trend for gold, opening space for further correction,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades in a Friday research note.
On Friday, February gold GCG21, -1.13% , the new most-active contract, shed $23.10, or 1.3%, to settle at $1,788.10 an ounce. Meanwhile, December gold GCZ20, -1.19% finished $23.60, or 1.3%, lower to end at $1,781.90 an ounce.
Gold trading on Friday puts it well beneath its 200-day moving average at $1,802.11, an area that technical analysts have viewed as support for the asset. A settlement at its current price would also mark gold’s lowest since early July.
The gold “bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00,” wrote Jim Wyckoff, senior analyst at Kitco.com, in a Friday note.
Meanwhile, March silver SIZ20, -2.91%, the new most-active contract, lost 80.7 cents, or 3.4%, to settle at $22.639 an ounce. December delivery SIZ20, -2.91% lost 80.9 cents, or 3.5%, to settle at $22.639 an ounce.
For the week, gold futures have lost over 4%, marking its steepest weekly skid since the period ended Sept. 25, based on the most-active contracts.
Silver was about 7% lower, also representing its steepest weekly skid since late September, FactSet data show. Futures for the metal have produced three consecutive weekly declines, which also mark the longest string of weekly losses since the three-week span ended May 1.
Gold’s decline has come despite weakness in the U.S. dollar, which commodities are priced in, and a retreat in government bond yields.
The U.S. dollar was off 0.1% on Friday and has dropped to around a three-year low at 91.93, as gauged by the ICE U.S. Dollar Index DXY, -0.18%. The 10-year Treasury note TMUBMUSD10Y, 0.845% fell 1.9 basis points to 0.859%. Bond prices rise as yields fall.
Meanwhile, March copper HGH21, +2.74% added 8.7 cents, or 2.6%, to settle at $3.4175 a pound. December copper HGZ20, +2.85%, the previous most-active contract, picked up 9 cents, or 2.7%, to end at $3.3995 a pound.
For the week, copper has gained about 4% for the week.
