Gold futures headed lower Friday, putting bullion on track to record its steepest weekly drop in more than a year and lowest settlement month to date, amid growing optimism on Sino-American trade talks and progress on Brexit.
December gold on Comex GCZ19, -1.44% was down $20.10, or 1.3%, to trade at $1,480.80 an ounce, falling further below the psychologically significant level at $1,500. Bullion’s decline, if it holds, would push the most-active gold futures contract to its lowest settlement and sharpest daily slump since Sept. 30, according to FactSet data.
For the week, gold is on track to lose 2.1%, which would represent the biggest weekly percentage decline for the most-active contract since a 2.85% decline in the week ended Aug. 17, 2018.
Meanwhile, December silver SIZ19, -0.98% lost 17.2 cents, or 1%, to trade at $17.43 an ounce, putting gold’s sister metal on pace for a weekly decline of 1.1%.
Markets were buoyant, after President Donald Trump offered an upbeat assessment of the talks and said he would meet with China Vice Premier Liu He on Friday, the final day of the most recent round of high-level trade discussions.
“Gold just needs to withstand the market relief that comes from a mini-trade deal,” said Edward Moya, senior market analyst at OANDA.
