Gold futures closed at their lowest level in three months on Thursday, according to SMM. Progress in international trade relations and soaring yields on US stocks and bonds have reduced the investment attractiveness of gold.
Gold futures for December delivery fell $26.70, or 1.8%, to close at $1466.40 an ounce on the New York Mercantile Exchange, the lowest close since Aug. 2. Silver futures for December delivery fell 58.8 cents, or 3.3%, to close at $17.01 an ounce.
Gold futures have fallen 3.2 per cent so far this week, possibly the biggest weekly decline since May 5, 2017, while silver futures are down nearly 5.9 per cent, possibly the biggest weekly decline since July 7, 2017.
Analysts say the shift in market risk appetite continues to put pressure on precious metals futures prices, forcing investors to reduce the proportion of gold in their portfolios. Recent factors such as the Fed's monetary policy guidance, the strength of US stocks and the prospect of a trade deal have weakened the rising potential of gold futures.
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