SMM News: gold prices due to the strength of the dollar, while the European Central Bank to maintain monetary policy unchanged, prompting some investors to take profits.
Comex August gold futures fell 13.50 cents, or 0.7%, to settle at $1800.30 an ounce at 13:30 New York time.
This is the lowest closing price for the most active contract since July 6, according to the data. It rose less than 0.1% on Wednesday.
Investors are also assessing the outlook for the global economy and markets at a time of a surge in new crown cases in the United States. At the same time, the ECB kept its key interest rates and asset purchases unchanged as expected.
The price of gold has remained around $1800 as an increase in new crown cases in many states has undermined the economic recovery.
"the surge in new crown cases in the United States makes the situation worse because companies are likely to lay off more workers," said NaeemAslam, chief market analyst at AvaTrade. "
Weekly jobless claims released in the US on Thursday showed that unemployment fell by 10, 000 to 1.3 million, a post-epidemic low. However, the small decline shows that the job market continues to be under pressure. The monthly rate of retail sales rose 7.5 per cent last month, following a record increase in May.
Aslam said the latest batch of economic data was "good news, not good news". The truth is, things are starting to come to a standstill.
Meanwhile, silver fell 19 cents, or about 1 per cent, to $19.573 an ounce in September, after the sister metal rose 1.2 per cent on Wednesday.
The fall in the two precious metals comes as global stock markets are retreating. Meanwhile, the safe-haven dollar rose modestly on Thursday afternoon as concerns about a rise in coronavirus infections triggered widespread safe-haven operations, pushing US stocks lower.
The market believes that the ECB's decision to leave interest rates unchanged gives the ECB some time to assess the impact of its policy actions before taking further stimulus measures to boost the economy.
"the main theme is that the central bank will hold back for some time and there will be more stimulus measures, but much later," said EdwardMoya, senior market analyst at brokerage OANDA. "this weakens the recent bullish trend in gold to some extent."
"although central bank policy makers will relax during the summer, government leaders in the United States and Europe will need to come up with their own fiscal responses," EdwardMoya, a senior market analyst at Oanda, said in a report.
"stimulation has always been gold's best friend, and it will happen soon," he said. "
The ECB maintains the main refinancing rate at 0% and the deposit mechanism interest rate at 0.5%. The net purchase under the asset purchase program will be 20 billion euros per month, and temporary purchases of 120 billion euros will be made before the end of the year; the emergency anti-epidemic bond purchase program will be maintained at 1.35 trillion euros, and the emergency anti-epidemic bond purchase program PEPP will operate at least
At the end of June 2021, reinvest the maturing PEPP bonds of the Emergency Anti-epidemic debt purchase Program at least before the end of 2022.
At the same time, investors are watching developments in China and the US to help judge the need for risk aversion.
For other precious metals, Comex October platinum futures fell $6.2, or 0.7%, to settle at $837 an ounce.
September palladium futures rose $15.10, or 0.8%, to settle at $2025.10 an ounce.
In addition, COMEX9 copper for monthly delivery closed up 1.65 cents, or 0.6%, at $2.9015 a pound.
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