Gold notches 3rd decline in 4 days as dollar edges higher

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Gold notches 3rd decline in 4 days as dollar edges higher

High-grade copper ends down 1.2% amid U.S.-China trade jitters

Gold futures settled in negative territory Monday as the U.S. dollar gained ground, weighing on the precious metal that has been hovering near 2018 lows.

December gold GCZ8, +0.13%  closed $5.50, or 0.4%, lower at $1,217.70 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 decline for the metal.

September silver SIU8, +0.27% meanwhile, shed 11.4 cents, or 0.7%, to settle at $15.348 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, -0.21% was trading up by about 0.2%. 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 come in addition to tariffs on $50 billion in U.S. goods which Beijing already imposed or said it would impose.

Among the popular metals ETFs, the SPDR Gold Trust GLD, +0.34% lost 0.3% on the day, while the iShares Silver Trust SLV, +0.45%  was trading 0.5% lower.

“Sentiment is very negative on metals,” wrote Mark Newton, market technical analyst, with Mark Newton Advisors, in an Aug. 3 research note. He says silver may be showing some evidence of turning a corner after it was pummeled with gold, although he wants to see more confirmation.

Peter Cardillo, chief market economist at Manhattan-based investment advisory firm Spartan Capital Securities, said gold is maintaining a bearish trend. “The price of the metal remains under a bear hug that has yet to run its course. However, he said increasing debt levels in the U.S. could offer the metal some respite but didn’t specify a time. “We are patiently awaiting an entry point,” Cardillo said.

Elsewhere on Comex, September copper HGU8, +0.77% lost 3.2 cents, or 1.2%, to end at $2.7315 a pound, after shedding 1.4% last week. Because of its use as a industrial metal, copper has been particularly influenced by vacillating trade-war concerns.

October platinum PLV8, +0.80% gave up $10.60, or 1.3%, at $826.30 an ounce, following a weekly gain of around 0.6%, while September palladiumPAU8, +0.54% fell $4.30, or 0.5%, to finish the session at $903.60 an ounce, after futures declined 1.2% last week.