Gold eases, but holds near 3-week peak on US recovery concern



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Gold eases, but holds near 3-week peak on US recovery concern

On Thursday, gold futures’ prices faltered despite an increase in appetite for safe-haven assets following reveal of a jejune weekly jobless claims data, as US Treasury yields ticked up from a multi-month low and US shares had pared some of their losses, but a softening American currency alongside concerns over the pace of US labour market recovery, had kept the yellow metal at a three-week peak.

In point of fact, the safe-haven precious had opened up the day on cloud nine with the US Dollar Index (DXY) measured against a basket of six major currencies plunging 0.3 per cent, while the US 10-year Treasury bond Yields had been tottered to a four-month low.

Nevertheless, as the US equity markets opened up, US Labour Department data had revealed that the US jobless claims had faltered marginally last week with continuing claims reporting small gains, pointing towards an imperilled US labour market recovery, which eventually had prompted an imperious demand for the US Treasury bond Yields.

Gold prices fall after hitting the strongest in three weeks

On Thursday’s commodity market wind-down, spot gold prices lost 0.2 per cent to $1,799.18 an ounce, while US gold futures had settled 0.1 per cent lower at $1,800.20 per ounce.

Among other precious metals, platinum closed out the day down by 0.8 per cent to $1,076.71 and palladium slid $2,806.95 an ounce, while silver contracts shed 0.8 per cent to wind up the day at $25.92 per ounce. Meanwhile, adding that the defensive stocks’ gains alongside a perk-up in US Treasury bond Yields, had needled through a majority of investors’ sentiment, a chief market strategist at Blue Line Futures in Chicago, Phillip Streible said that the yields edging higher from lows with stocks paring some of the losses had weighed on gold since midday.

However, the bullion would more likely to remain well supported especially given the scale of a growing concern about the US labour market recovery and the delta variant.