Gold ended with a loss on Friday and ended down around 3% for the week. Silver also fell and while Brent crude rose and US oil futures were mixed, iron ore and copper all rose on the day.
More risk, a mixed performance by the US dollar and ignoring China’s worst economic contraction on record, all contributed to gold’s loss.
And there was early optimism over a drug that’s anecdotally shown potential to treat COVID-19 and the release of a road map to gradually reopening the US economy.
“Risk sentiment has been bolstered by U.S. President Donald Trump and reports suggesting a potential coronavirus treatment” from US drug company Gilead Sciences Inc., said Lukman Otunuga, senior research analyst at FXTM told Marketwatch.com.
“Market hopes around plans to ease lockdown measures are set to rise, especially after Trump set guidelines that allow social distancing rules to be lifted as soon as four weeks.”
“While gold may sink lower on the good news, the downside will most likely be limited as disappointing economic data across the world drags investors back to reality,” Otunuga added.
As a result, Comex gold for June delivery slid $US32.90, or 1.9%, to settle at $US1,698.80 an ounce, with prices down 3.1% from the $US1,732.80 finish on April 9 – the Thursday before the Easter break. Gold dipped further in after-hours trading to end the week around $US1,694 an ounce.
Comex May silver lost 32.7 cents, or 2.1%, to close at $US15.295 an ounce, for a weekly loss of 4.7% and Comex copper ended up for the day and week.
Despite the weak Chinese economic data on Friday (copper is considered to be a key proxy metal for China’s economy) the Comex May copper contract jumped 2.3% to $US2.3445 a pound, for a solid weekly gain of 3.8%.
And iron ore prices edged high on Friday despite news that crude steel production fell last month. The Metal Bulletin said the price for 62% Fe fines delivered to northern China was up 80 US cents or nearly 1% to $US86.17. That was also up 0.6% (55 cents) from the pre-Easter close of $US85.60.
