Gold was headed for its first losing session in nine on Monday, tumbling as encouraging global trade headlines drove investors away from the metal and into perceived riskier assets such as stocks, while the dollar gained.
August gold GCQ19, -1.07% fell $14, or 1%, to $1,332.10 an ounce, after closing up 0.3% on Friday. The metal gained roughly 2.7% last week, its biggest weekly rise since the since the one ended March 23, 2018, according to FactSet data, based on the most-active contracts. Gold has now risen for eight straight weeks, its longest such win streak since Jan. 5, 2018.
Read: Gold’s latest rally hints at a return to record price levels
Gold has been strengthening amid rising expectations the Federal Reserve will cut interest rates — a supportive environment for the metal to gain amid lower rates and flight-to-safety bets — possibly more than once this year. That’s as trade tensions between the U.S., China and Mexico have raised questions over U.S. and global growth.
Gold got a lift Friday after unexpectedly weaker U.S. jobs data appeared to make it easier for the Fed to cut rates.
A decision by the U.S. to not impose import tariffs on Mexico late Friday helped drive Asian stocks higher on Monday, driving up U.S. stock futures as well. Also helping, Group of 20 finance leaders on Sunday vowed to protect global growth from disruptions such as trade tensions. And China export growth saw a small rebound in May, though imports fell sharply.
The ICE U.S. Dollar Index DXY, +0.27% rose 0.3% to 96.830, after falling Friday and marking a weekly loss of 1.2%. Also falling sharply Friday, the yield on the 10-year Treasury note yield TMUBMUSD10Y, +2.19% rose 2% to 2.12%. Both factors were denting appetite dollar-denominated gold.
July silver SIN19, -1.77% fell 26 cents, or 1.7%, to $14.77 an ounce, after adding 3.2% last week. July copper HGN19, +0.32% rose 0.4% to $2.637 a pound. July platinum PLN19, -0.42% rose was flat at $805.70 an ounce. September palladium PAU19, -0.50% fell 0.5% to $1,349.30 an ounce.
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