Bullion prices ended lower at Comex on Friday, 13 September 2019. Gold futures ended lower on Friday, giving up earlier gains to feed a loss for the week as appetite returned for assets perceived as risky and bond yields climb. Gold pared some of its earlier gains then turned lower after Friday's economic data hit Wall Street.
December gold on Comex lost $7.90, or 0.5%, to settle at $1,499.50 an ounce, with the commodity suffering at a weekly decline of 1.1%. Silver for December delivery dropped 60.8 cents, or 3.3%, to $17.569 an ounce. Prices saw a weekly loss of 3%.
Meanwhile, the dollar as measured by the ICE U.S. Dollar Index, a gauge of the greenback against six rival currencies, was poised to register a 0.2% weekly loss. It was also trading 0.7% lower month to date. A weaker dollar can make dollar-pegged commodities more appealing to buyers using other currencies.
Rising government bond yields, which compete with gold for investors seeking safety, were undercutting demand for gold and other precious assets that don't bear a coupon.
Economic data at Wall Street on Friday revealed that the University of Michigan consumer sentiment index rebounded to 92 in September from 89.8 in August. U.S. business inventories also increased by 0.4% in July and U.S. retail sales rose 0.4% in August.
Also, the European Central Bank launched a batch of stimulus measures intended to bolster the eurozone economy, which is expected to influence policy actions by the Fed.
Against that backdrop, assets considered risky have rallied, with the Dow Jones Industrial Average headed for an eighth straight advance on Friday. That dynamic has taken away bidders from gold and bonds.
According to Dow Jones Market, the 2-year Treasury yield was on track to climb the most in a week since June 5, 2009, while the 10-year Treasury note was set for its sharpest weekly rise since Nov. 10, 2016.
Geopolitical risks have also declined, weakening the bid for gold, as China moved to exempt U.S. agricultural products from tariffs after reports of a potential interim trade deal. President Donald Trump said on Thursday that he was willing to consider an interim trade deal with China.
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