Gold is set to end the week 1 per cent lower, as investors continue to shun the metal in spite of rising trade tensions that have spread across global markets.
The perceived haven fell to $1,239 a troy ounce on Friday, just shy of its low for the year of $1,237 hit on July 3.
“Gold remains completely imperturbable,” analysts at Commerzbank said. “Or to put it another way — not matter what happens, the gold price does not rise to any significant extent.”
Gold has fallen 5 per cent since the beginning of the year, driven by selling of gold-backed exchange traded funds and gold futures on the Comex exchange in New York.
Gold prices fell by 4.2 per cent in June as assets in gold-backed ETFs fell by 2.1 per cent compared to a month earlier, according to the World Gold Council.
“Why gold is not profiting from the current turmoil is something that puzzle us more and more each day,” Commerzbank said.
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