Gold on track to close out week down nearly 5 pct

Otmane El Rhazi from The Bullion Desk.

The gold price remained in negative territory in afternoon London trading, capping off a catastrophic week for the precious metals complex.

Spot gold was last down $4.90 at $1,085.30/1,108.10 per ounce, having earlier struck fresh five year lows at $1,077.50. Gold is now down nearly five percent for the week so far, while silver is down nearly three percent at $14.50/14.55 per ounce, down 12 cents for the session.

“Gold is suffering significant losses once again as the week of trading comes to an end,” Commerzbank said. “Good US labour market data are weighing on the gold price – last week saw the lowest number of new jobless claims filed since November 1973.”

Yesterday, the US weekly unemployment figure was 255,000, the lowest figure in over four decades.

In data today out of the eurozone, the EU flash services number disappointed at 53.8, though the manufacturing number was as expected at 53.8. The US figure was also as expected at 53.8.

As such, the dollar was last almost unchanged for the day at 1.0980 against the euro and European and US stock markets are on track to end the session in negative territory as it stands.

In the PGMs, platinum was last down $3 at $974/979 per ounce while palladium was down $2 at $615/620.

(Editing by Tom Jennemann)

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