Gold futures on Thursday were swinging between slight gains and losses as equity markets drifted higher amid persistent worries about U.S.-China trade tensions and fears of sluggish global economic growth.
Gold for August delivery on Comex
most recently, was down $1.30, or 0.1%, to trade at $1,285 an ounce.
meanwhile, rose a penny, or less than 0.1%, to $14.415 an ounce. On Tuesday, prices logged their lowest settlement of 2019 so far.
Gold is set to trade lower for May and is hanging on to a 0.2% weekly gain. Silver futures were set for a weekly skid of 0.8% and a month-to-date slide of 3.6%. The exchanged-traded gold fund, the SPDR Gold Shares
meanwhile, was down 0.4% for the week, as of Wednesday’s close, with a 0.3% slide in sight, and the silver-focused iShares Silver Trust
was set for a 1% weekly fall and drop of 3.6% in the month to date.
Precious metals have enjoyed some gains from the flight to perceived safety in gold during the Sino-American trade clashes, but worries about global demand and a strengthening dollar have also capped bullion’s moves. market participants have said.
Thursday morning in New York, a popular gauge of the dollar, the ICE U.S. Dollar Index, was edging up less than 0.1%, while the Dow Jones Industrial Average
and the S&P 500 index
were advancing solidly, attempting to rebound from a downturn.
“Gold has been traditionally seen as a safe haven play, and the metal is benefiting from the slump in global stocks,” wrote David Madden, market analyst at CMC Markets.
“Since February, gold has been in a downward trend, and while it holds below the $1,300 mark, its outlook is likely to remain bearish,” he wrote on a daily research note.
In economic news, traders digested a second read of gross domestic product, which showed that the economy grew at a 3.1% annual pace in the first quarter, from an initial 3.2% estimate. Meanwhile, initial jobless claims, a rough way to measure layoffs, rose by 3,000 to 215,000 in the seven days ended May 25, the government said Thursday.
Separately, an advanced reading of wholesale inventories showed that the U.S. trade deficit in goods widened slightly in April, rising to a seasonally adjusted $72.1 billion from $71.9 billion.