Gold prices fell Friday to their lowest settlement in nearly a year, with the precious metal failing to find safe-haven support from the U.S.-China trade dispute, as the U.S. dollar gained for the week.
August gold GCQ8, -0.41% lost $5.40, or 0.4%, to settle at $1,241.20 an ounce, marking the lowest settlement for a most-active contract since July 17, 2017, according to FactSet data. The contract saw a 1.2% weekly decline, the fourth such loss in five weeks.
A popular fund tracking gold, the SPDR Gold Shares GLD, -0.47% was on pace to fall by about 1.1% this week.
A stronger dollar—which has drawn haven demand amid the clash over trade between the U.S. and China and pushed higher on rising-rate expectations—has been the most significant headwind for gold. A strengthening greenback can make commodities linked to the monetary unit, such as gold, more expensive to buyers using other currencies.
Indeed, the ICE U.S. Dollar Index DXY, -0.10% a measure of the buck against a half-dozen monetary units, has gained 0.8% thus far this week.
“The bearish price action witnessed in recent weeks despite the growing risk aversion continues to suggest that gold is still losing its safe-haven allure,” wrote Lukman Otunuga, research analyst at FXTM, in a Friday note. “Bulls have simply failed to garner any support from global trade concerns and this continues to be reflected in prices.”
Meanwhile, September silver SIU8, -0.98% shed 16.2 cents, or 1%, to $15.815 an ounce, the lowest finish year to date for a most-active contract. Gold’s sister metal saw a weekly decline of 1.6%, with the metal dogged by a downturn in industrials metals on the back of tariff tensions and a retreat for precious metals.
September copper HGU8, -0.05% settled nearly flat at $2.776 a pound, but logged a weekly loss of about 1.7%. October platinum PLV8, -1.78% shed 1.9% to $830.30 an ounce, ending 2.2% lower on the week, while September palladium PAU8, -1.71% finished at $932.80 an ounce, losing 1.7% on the day, and down 1.6% for the week.