By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) -- Gold prices extended their downward trend in Asia on Friday, with the yellow metal seemingly enjoying little safe haven status amid what some analysts said was investor capitulation on commodity-related themes.
Gold for August delivery GCQ2 +0.03% moved down $3.00, or 0.2% at $1,562.60.
In the regular U.S. session, gold fell $50.30, or 3.1%, to end at $1,565.50 an ounce on the Comex division of the New York Mercantile Exchange, marking its sharpest decrease since early April.
Economist Marc Faber told CNBC on Thursday that the broad sell-off in commodities showed that many investors had “thrown in towel”, indicating a perceptual shift towards a more bearish view the direction of the global economy.
In its morning note ahead of open in Asia, IG Markets said Thursday’s declines were also triggered by weaker economic data and a “hangover persisting” amid disappointment that no quantitative easing was announced by the Federal Reserve following its policy board meeting Wednesday.
The brokerage noted that the mood was positive for the U.S. dollar, as investors pared all but the safest investments in the risk-off environment.
“We saw soft manufacturing numbers from Germany, China and the U.S. flagging economic growth concerns further. The US dollar rallied against its peers, as investors shunned risk,” IG said in the note.
Among other metals, July silver SIN2 -0.26% was down 5 cents, at $26.79 an ounce, a drop of 0.2%.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
