Gold is heading for its biggest weekly loss in six months, with a 1.8% loss on Friday, the final day of the week. Demand for safe-haven assets, led by the yellow metal, continues to decline, coinciding with the easing of trade tensions following the interim agreement between Washington and Beijing earlier this week. Investors are taking profits after recent strong gains. The yellow metal is trading at the beginning of the US session today, Friday, May 16, down about 1.8% at $3,180 per ounce, while silver is trading at $32.18 per ounce, down 1.50%.
On the economic front, data released by the University of Michigan just moments ago showed a preliminary reading of US consumer confidence for May falling by 1.4 points to 50.8, down from 52.2 in April. Expectations had been for a rise to 53.1, marking the lowest reading in three years, amid growing concerns about inflation due to the trade war.
This consumer confidence reading stemmed from increased consumer fears of rising inflation rates. The current conditions index fell to 57.6 from 59.8, while the expectations index fell to 46.5 from 47.3 in April.
The preliminary reading of inflation expectations rose to 7.3%, up from 6.5% in April, reflecting concerns about continued rising inflation in the United States.
Platinum, meanwhile, is trading at $983, down about 0.77%, while palladium is down about 0.70%, trading at $962.