The gold price recovered from its earlier lows during Friday sessions, but sentiment surrounding the yellow metal remained poor as it continued to trade under $1,100 per ounce.
Spot gold was last at $1,082.90/1,083.70, still down $7.7 on the previous day’s close, but off the fresh five year lows it hit earlier today when tumbled to just $1,077.50.
Today, the euro has lost ground against the dollar after poor EU data added fuel to the fire of negative sentiment – the single currency was last at $1.0946.
EU flash services number disappointed at 53.8, though the manufacturing number was as expected at 53.8. Later the US will release its flash manufacturing data.
Yesterday, better-than-expected US jobs data sparked the move lower, while poor oil and metal prices have made commodities an unattractive proposition for investors.
Still, despite gold’s losses this week, bullion’s decline this year has not been as severe as the other commodities, James steel at HSBC noted.
Gold has fallen by 7.9 percent year-to-date compared with base metals, which in aggregate are down 15.6 percent and energy commodities which in aggregate are down 9.7 percent
“Even though gold is down this year, it remains a relative outperformer against the bulk of commodities,” Steel said.
Elsewhere, Chinese HSBC flash manufacturing data came out at 48.2 against a forecast of 49.8. The number was below the psychologically important 50 level for the first time in 15 months.
More volatility is likely next week as the market will switch its attention to the US FOMC meeting.
“Further hints that the Fed is on track for a September rate hike could present downside risks for gold especially given current momentum,” UBS said.
Silver has tracked gold lower and it hit a six year low of $14.50 per ounce in Asian sessions. It was last at $14.57/14.61 still down from the previous $14.64.
Platinum at $974/979 was down $5 and palladium at $620/626 was $1 higher.
(Editing by Archie Hunter)
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