Investors, have shunned the precious metal that should be drawing buyers amid clashes between the U.S. and trade partners across the major-developed world.
Gold futures were little changed on Friday in New York but are at risk of sinking deeper into more-than-one-year-low territory as investors await the official read on of the health of the U.S. jobs market, which could dictate moves in an array of assets and knock bullion lower.
December gold inched 40 cents, or less than 0.1%, lower to $1,219.60 an ounce. If the metal sinks during this session, it will mark its third straight decline. However, September silver futures added 6 cents, or 0.4%, $15.455 an ounce.
Gold has been badly underperforming in recent weeks as the dollar has been mostly trending higher. As measured by the ICE U.S. Dollar Index , a gauge of a the buck against six rivals, the dollar has climbed 0.5% so far this week, while gold is on track for a weekly decline of about 0.3%, while silver is set for a fall over the same period of 0.5%, according to FactSet data.
A stronger dollar can mute the appeal of gold, making the asset more expensive for buyers.
Bank of America Merrill Lynch analysts in a Thursday note, led by Michael Hartnett, chief investment strategist, said investors sold some $400 million in gold and $2 billion in equities, for the week in what the bank says represents a instance of “off loading”risk.
Looking ahead, investors await the jobs report, with economists polled by MarketWatch forecasting an increase of 194,000 new jobs for July, with the unemployment rate set to tick down to 3.9% and average hourly wages slated to show a rise of 2.7% from last year.7