Gold loses some of its shine with rare price fall

Bullion is ending a week filled with big price fluctuations on a relatively tame note, trading at over $100 an ounce below last week's record.  

Bullion is ending a week filled with big price fluctuations on a relatively tame note.

Gold headed for its first weekly drop in more than two months after being buffeted by climbing real yields, profit-taking and uncertainty over US-China trade talks.

Bullion is ending a week filled with big price fluctuations on a relatively tame note, trading at more than $100 an ounce below last week’s record after dropping the most in seven years on Tuesday.

Prices remain under pressure into the weekend, when Beijing and Washington were set to discuss progress on the first phase of their trade deal, but that meeting has now reportedly been postponed.

The rally in gold, which has surged this year as central banks worldwide took steps to shore up ailing economies and real yields turned negative in the US, is encountering some turbulence with the sell-off in treasuries and a stalemate in US stimulus talks.

Data showed China’s economic recovery continued in July and US industrial production increased for a third straight month, further dimming the appeal of bullion as a haven.

“Traders are concerned about upcoming trade discussions with China,” George Gero, a managing director at RBC Wealth Management, said. 

He said: “Their uncertainty is they don’t know how those trade talks are going to go and how it’s going to affect a number of other commodities.” 

-Bloomberg