On Thursday, the precious yellow-metal gold futures’ prices had been hit with a whiplash of as much as 2 per cent, breaking below a key psychological support level of $1,800, while silver future’ prices slipped 3.2 per cent after hitting a nearly eight-year peak on Monday as a stronger US Dollar alongside US Treasury yields seemingly had corroded the bullion’s safe-haven bid.
In point of fact, in the day’s downfall of a number of precious metals comes over the heels of a raft of upbeat US economic data released this week which in effect had swayed away an intense cloud of holocaust which had been brewing over the US economy in recent pasts, allaying concerns over the health of US economy.
If truth is to be told, latest downfall in global commodity market that had dragged the precious gold futures’ prices down to a two-month low, came forth as a swathe of robust economic data had revived the US Dollar’s safe-haven appeal.
Earlier in the US trading hours, US Commerce Department said in a statement that new orders for US-made core capital goods surged 1.1 per cent in December, while orders for non-defence goods revised higher during the last two months of 2020.
Apart from that, US non-farm payroll data for January released yesterday had shown that the US employers had begun to create new jobs, while Labour Department said earlier in the day that the layoffs had declined last month, eventually reigniting the US Dollar’s safe-haven bid.
Gold, silver contracts drop as American Dollar rises across the board
Citing statistics, in the day’s commodity market wind down, spot gold futures gobbled down as much as 2.3 per cent in losses to $1,791.76 an ounce after hitting a session-low of $1,784.76, a level never seen since December 2020, while US gold futures wrapped up the day 2.4 per cent lower to $1,791.20 an ounce.
Apart from that, silver futures’ prices, which had shed as much as 13 per cent this year following a retailer-frenzy led upsurge earlier this week, tumbled 2.3 per cent further to curtail the day at $26.26 an ounce.
Among other precious metals, platinum contracts fell 0.7 per cent to $1,093.52 an ounce. Meanwhile, referring to investors’ optimism that the world’s largest economy had been recovering from a pandemic-fuelled fiscal downturn, a head of commodity strategist at TD Securities, Bart Melek said, “The steepening of yield curve ultimately means the cost of holding gold across the curve is increasing.
Gold could go even lower and consolidate in response to ... the whole idea that the U.S. and global economy are recovering. ”