Gold futures traded lower on Monday as the U.S. dollar gained early traction, weighing on the precious metal that has been hovering near 2018 lows.
December gold GCZ8, -0.48% was $5.50, or 0.5%, lower at $1,217.50 an ounce, after prices for the most-active December contract logged a weekly loss of roughly 0.8% to close out Friday trade. That was the fourth straight weekly loss for the metal.
September silver SIU8, -0.76% meanwhile, shed 11 cents, or 0.7%, to $15.355 an ounce. The commodity booked a 0.2% loss for the week ended Friday.
The yellow metal’s decline comes as the buck, as gauged by the U.S. ICE Dollar Index DXY, +0.25% was trading up by about 0.15%. A stronger dollar can make gold, and other dollar-pegged commodities, more expensive to buyers using other currencies.
Trading in commodities have come amid a focus on global trade tensions, which have helped to buoy the dollar and pressure gold and silver lower.
On Friday, China threatened to impose tariffs, ranging from 5% to 25%, on $60 billion of U.S. goods. The penalties would add to the $50 billion in U.S. goods on which Beijing already has imposed or said it would impose tariffs.
Among the popular metals ETFs, the SPDR Gold Trust GLD, +0.35% closed out last week’s trade down 0.7%, while the iShares Silver Trust SLV, +0.49% logged a weekly decline of 0.3%.
“Sentiment is very negative on metals,” wrote Mark Newton market technical analyst, in an Aug. 3 research note. He says silver may be showing some evidence of turning a corner after also get pummeled along with gold of late. However, he confirmation that precious metal would be able to follow through on some slight upward momentum.
Newton, who runs an eponymous advisory firm, Newton Advisors, said “this whole precious metals space has been a difficult area,” referring to pressure on prices that have persisted in that segment of commodities.
Elsewhere on Comex, September copper HGU8, -1.61% lost 3 cents, or 1.2%, to reach $2.731 a pound, after shedding 1.4% last week. October platinum PLV8, -0.98% gave up $3.20, or 0.4% at $833.70 an ounce, following a weekly gain of around 0.6%, while September palladium PAU8, -0.58% fell $2.10, or 0.2%, at $905.80 an ounce, after futures declined 1.2% last week.