Gold price on track for longest stretch of weekly losses since July

San Francisco (Nov 13)  Gold futures were little changed on Friday in early trade, but looking at a four-week losing streak—the metal’s worst period of declines since late July.

December gold GCZ5, +0.05%  was 50 cents, or less than 0.1%, lower at $1,080.50 an ounce, after settling at $1,081 an ounce on Thursday, hovering around a five-year settlement low for a most-active contract.

Gold is on pace for a fourth weekly loss off 0.6%, the longest stretch of consecutive weekly declines since the five-week drop that ended July 24.

The slump for gold comes even as the dollar has weakened this week, posting a weekly fall of 0.1%, as measured by the ICE U.S. Dollar Index DXY, +0.59% which is a measure of the greenback against a basket of six rival currencies.

A weaker dollar should be a boon to gold, making it more attractive to investors using other currencies. However, over the longer term, gold and other dollar-denominated commodities have been hamstrung at the prospect of a hike to benchmark interest rates by the Federal Reserve in December, which would lift the dollar.

“The direction of gold continues to be dictated by U.S. rate expectations and today may have offered buyers a chance to make the most of the $1,080 [an ounce] support. Technically if prices attain a solid daily close below this support, then prices may decline to the next relevant level at $1,050 [an ounce],” said FXTM analyst Lukman Otunuga in a Friday research note.

Meanwhile, December silver SIZ5, -0.14%  was 4 cents, or 0.3%, lower at $14.19 an ounce, and on track for a weekly decline of 3.4%.

Source: MarketWatch