Silver falls close to lowest Friday benchmark in a year
Gold pares losses after turbulent week for the precious metals
Spot silver fell to within touching distance of its 2021 low on Friday, dropping to $22.12 per troy ounce in mid-afternoon before paring its losses.
The decline constituted the lowest Friday benchmark in the London bullion market since 25 September 2020.
Gold briefly suffered against a rising dollar, approaching a 6-week low $1,743 per troy ounce before recovering in part thanks to expectation beating US new home sales. Instead of the 714,000 forecast by analysts, new home sales rose to a seasonally adjusted annualised rate of 740,000 in August.
Despite this last minute bump, gold could still experience its worst weekly finish in five months.
The provision by the Federal Reserve of greater detail as to the schedule and scale of its QE tapering has weighed on the yellow metal.
On Friday, the 10-year Treasury yield exceeded 1.45% to reach its highest level since July. Gold traditionally trades in inverse correlation with the metric.
Although the monetary landscape may be changing, the metal could prove attractive as a safe haven in the coming weeks should the Evergrande crisis significantly worsen.
The heavily indebted property empire failed to make good on the first of two dollar-denominated bond interest payments on Thursday, heightening concerns that it could default and potentially wreak havoc on global markets.
By 17:30 (BST), spot gold traded down up by 0.5% at $1,752.85, while spot silver stood 0.2% lower at $22.469 per troy ounce.
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