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Futures closed lower on strong US economic data
Jul 2,2020 08:10CST
Source:Dow Jones
The content below was translated by Tencent automatically for reference.

SMM: COMEX gold futures closed lower on Wednesday as US manufacturing data were encouraging and rising hopes for a potential new crown vaccine boosted the stock market.

At 13:30 in New York time, Comex August gold futures settled at $1779.90 an ounce, down $20.60 or 1.1%.

Gold futures broke through the $1800 mark on Tuesday and reached their highest close in nearly nine years as uncertainty over the global economic recovery underpinned safe-haven demand.

Us manufacturing activity rebounded in June to its highest level in more than a year, and the new crown vaccine developed by BioNTech and Pfizer showed potential in early human trials, raising hopes.

"renewed optimism that the US economy will recover faster than expected could boost risk-taking and eventually undermine appetite for safe-haven assets, including gold," said LukmanOtunuga, an analyst at Fortune FX (FXTM).

Gold surged 13 per cent last quarter amid fears of a second wave of virus infection and increased stimulus measures by central banks around the world and keeping interest rates low to ease the impact of the pandemic on the economy. The main gold contract rose more than 18 per cent in the first half.

The holdings of SPDRGold, the world's largest gold exchange-traded fund, increased by 211.9 tons, or nearly 22%, in the second quarter, reflecting high investor demand for gold.

"profit-taking operations began to emerge as gold prices approached $1790," Oanda said in a report. "given that we are close to an important level, I expect more lock-in profit operations and the price rally could quickly lose ground."

Gold bulls expect concerns about the spread of the new crown epidemic and economic stimulus measures by governments and global central banks to help boost gold prices.

"Gold continues to rise to a new historic level and is expected to move towards $2000 this year," PeterCardillo, chief market economist at SpartanCapitalSecurities, wrote in a report on Wednesday. "

For other precious metals, September silver futures fell 41. 9 cents to settle at $18.218 an ounce.

October platinum futures fell $16.80 to settle at $834.40 an ounce.

September palladium futures fell $36.20 to settle at $1930.70 an ounce.

In addition, COMEX9 copper for monthly delivery closed up 55 cents at $2.7340 a pound.

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