Gold is heading for the worst weekly performance in two months


Gold prices rose on Friday, but trading is taking place in a narrow range as investors are reluctant to form positions in the absence of stimulating news. But the yellow metal is on track for its biggest weekly drop in two months, while the long-awaited single-stage trade deal between the United States and China has fueled risk appetite.

And gold increased in spot transactions 0.2 percent to $ 1555.14 an ounce by 06.02 GMT, heading towards a decrease on a weekly basis by 0.4 percent, the largest since the week ending November 8.

US gold futures rose 0.4 percent to $ 1556.90.

“The stimulus seems to have run out in the very near term. (Gold) prices are accommodating the recent volatility and are mainly in a wait-and-see mode,” said Elia Spivac, currency analyst at DailyFX.

Meanwhile, data showed that Chinas economic growth slowed to its lowest level in 30 years in 2019 in light of the trade war with the United States and weak investment.

The 18-month-old trade war between the world’s two largest economies has hurt the global economy and pushed gold prices up 18 percent last year. Gold is considered a safe asset in times of political and economic uncertainty.

Financial markets sank a slight relief after the announcement of the trade agreement, despite continuing concerns about tariffs and unresolved core issues.

Gold was under pressure as Asian stocks rose after Wall Street global shares hit record highs.

As for other precious metals, palladium rose 0.9 percent to 2333.50 dollars an ounce, after reaching a record high at 2395.13 dollars yesterday, and is heading to record the largest weekly gain since January 2017.

Platinum jumped 0.9 percent to $ 1013.57, after hitting the highest level since February 2017 at $ 1041.05 in the previous session.



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