On Friday, the precious safe-haven yellow metal US gold futures’ prices lost grounds as a sharp upswing in US Treasury bond notes coupled with an increase in September retail sales data had dampened the bullion’s safe-haven stance.
In factuality, in the day’s hefty losses in gold prices were largely catalysed by a recovery in US Treasury Yields, as 10-year US Treasury bond notes which ended the day at 1.57 per cent, dipped to a fresh one-week low on Thursday.
Meanwhile, referring to a raft of economic data that had been leading to a downward spiral in gold futures’ prices, a chief market analyst at Blue Line Futures in Chicago, Phillip Streible said, “Gold has everything going against it.
Real rates are rising, equities are higher, so is bitcoin”. Adding further strains on both spot gold and US gold futures’ prices, US retail sales soared by 0.7 per cent in September compared to an analysts’ estimate of a decline of 0.2 per cent, stepping up risk-appetites further as latest US retail sales data led to analysts’ beliefs that US economic growth might not have stalled in third-quarter as predicted earlier.
In physical form, gold prices roared back to premiums in India amid a demand-surge during a recent religious festival.
Gold retreats as risk-appetites return
Citing statistics, in the day’s commodity market wind-down, spot gold prices took a tattering header of 1.5 per cent to $1,768.38 an ounce, while US gold futures’ prices settled 1.7 per cent lower to $1,768.30.
Among other precious metals, silver soured 0.9 per cent to $23.32 an ounce, however had still logged the largest weekly percentage gain in more than a month a half, while platinum ended flatlined at $1,055.24 an ounce and palladium was plunged 2.4 per cent to $2,078.27 per ounce.