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.

Get alerts on Gold when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.

Comments have not been enabled for this article.

Follow the topics in this article