Gold tries to snap 4-day los­ing streak, but weekly loss looms


Gold fu­tures are inch­ing higher in early trade, aim­ing to snap a four-day los­ing streak Fri­day. But the me­tal is still on track to post its worst weekly loss in about a month.

Gold for De­cem­ber de­liv­ery GCZ5, +0.54% gained $2.10, or 0.2%, to $1,124.70 an ounce in early trade, and was eye­ing a 3% loss-its worst weekly de­cline since July 24, when the pre­cious me­tal slid 4.1% for the week.

Sev­eral fac­tors are weigh­ing on the yel­low me­tal. Thurs­day's stronger-thanex­pected gross do­mes­tic prod­uct re­port sug­gests the U.S. econ­omy may be on bet­ter foot­ing than the mar­ket has feared. An­a­lysts spec­u­late that de­spite glob­al­mar­ket tur­moil fu­eled by China-the world's sec­ond-largest im­porter of com­modi­ties-the Fed­eral Re­serve may still find cause to lift in­ter­est rates sooner than later.

Higher rates would be a boon for the U.S. dol­lar but may dim the ap­peal of dol­lar-de­nom­i­nated gold for buy­ers pur­chas­ing the as­set in other cur­ren­cies. Another event in­vestors are watch­ing is the Jack­son Hole sum­mit, where Fed of­fi­cials are ex­pected to drop clues about the U.S. cen­tral bank's like­li­hood of hik­ing rates just weeks ahead of the key two-day meet­ing of the Fed­eral Open Mar­ket Com­mit­tee start­ing Sept. 16.

"Un­cer­tainty lingers as the Septem­ber FOMC meet­ing looms," wrote UBS an­a­lysts Edel Tully and Joni Teves in a Fri­day re­search note. Per­sonal-con­sump­tion ex­pen­di­tures, a mea­sure of in­fla­tion, was at its low­est level since March 2011, ac­cord­ing to a re­port by the Com­merce Depart­ment. UBS says the re­port "will be im­por­tant amid con­cerns about sub­dued in­fla­tion." Gold held on to its gains af­ter the PCE data were re­ported Fri­day at 8:30 a.m. Eastern.

In other met­als, Septem­ber sil­ver SIU5, +0.33% gave up a penny, or less than 0.1%, to trade at $14.41 an ounce, and is on track for a weekly loss of 5.8%, its worst weekly loss since Feb. 20, when the me­tal skid­ded about 5.9% for the week.

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