Gold Prices Slip on Strong US Economic Data Ahead of Fed Chief's Speech - News18
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Last Updated: June 28, 2023, 00:32 IST
New York, United States of America (USA)
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Spot gold fell 0.6% to $1,911.53 per ounce by 2:08 p.m. EDT (1808 GMT), while U.S. gold futures settled 0.5% lower at $1,923.80
Gold reversed course to slip on Tuesday after strong U.S. economic readings, while traders positioned for Federal Reserve Chair Jerome Powell’s speech and more data that could offer clues on future interest rate hikes.
Spot gold fell 0.6% to $1,911.53 per ounce by 2:08 p.m. EDT (1808 GMT), while U.S. gold futures settled 0.5% lower at $1,923.80.
U.S. consumer confidence increased in June to the highest level in nearly 1-1/2 years, while new single-family home sales rose by a more-than-expected 12.2% in May.
“Gold did not like the news," said Edward Moya, senior market analyst at OANDA, as “that better economic data is going to drive those Fed tightening expectations and that should push up yields as well".
Benchmark 10-year Treasury yields climbed, making zero-interest-bearing gold less attractive. [US/]
Bullion edged up on Monday on risks from the short-lived mutiny in Russia.
But for gold, “the key question is the extent to which the internal tensions within Russia or any potential toppling of the government might affect global monetary policy," Commerzbank analysts wrote in a note.
Gold has shed about 2.6% this month — set for a second consecutive monthly fall if losses hold — as bets for higher-for-longer U.S. interest rates dented the zero-yielding asset’s appeal and overshadowed its traditional safe-haven role to some extent.
Investors were awaiting Powell’s upcoming speech, along with a trove of key economic data on Thursday.
“Between now and Thursday, you’re going to see a drifting, no-man’s-land trading, sideways market here in gold, unless something else was to break," said Bob Haberkorn, senior market strategist at RJO Futures.
Silver advanced 0.1% to $22.79 an ounce and was bound for a third straight session of gains.
Platinum fell 0.2% to $922.78 and palladium was down 0.6% at $1,297.89.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - Reuters)
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