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The gold deposit closed down and ended its nine-day upward trend in a row.
Jul 31,2020 09:58CST
Source:Dow Jones
The content below was translated by Tencent automatically for reference.

SMM News: COMEX futures closed down on Thursday, ending the nine-day upward trend.

Comex August gold futures fell 0.6 percent, or $11.1, to settle at $1942.30 an ounce at 13:30 New York time.

The most actively traded December gold contract fell 0.5 per cent, or $9.90, to settle at $1966.8 an ounce.

Gold prices jumped on Wednesday after the Federal Reserve announced plans to keep interest rates near zero until the economy improves further.

The Federal Reserve reiterated its commitment on Wednesday to use "all tools" to support the US economy and to keep interest rates near zero, depending on how the economy recovers from the novel coronavirus epidemic. Officials also say the path of economic development depends largely on the evolution of the epidemic.

However, some analysts believe gold may be entering a period of consolidation after a historic rally.

The dollar index was near a two-year low, while Treasury yields fell to a multi-month low on Thursday after data showed the US economy shrank at its sharpest pace in decades and President Trump tweeted his intention to postpone the November 3 presidential election.

At the same time, US gross domestic product ((GDP)) shrank at a record pace in the second quarter. According to data released by the U.S. Department of Commerce, the initial annualized rate of real GDP in the United States fell by 32.9% in the second quarter, the biggest drop since the 1940s. The revised annualised rate of real GDP fell by 5 per cent in the previous quarter.

MarkO'Byrne, head of research at GoldCore, said gold hit a record high of nearly $2000 an ounce and silver hit a multi-year high of nearly $26 an ounce, but prices will correct as expected.

"there is likely to be short-term weakness before precious metals prices rise further," he said. " "Gold is likely to climb to the $3000 mark over the next 12 months, while silver is expected to rise to $50-$100."

"it is important that the focus is on value rather than price, and investors value gold and silver as hedges and hedges rather than their prices in dollars," he said. "

However, global gold demand fell in the second quarter and the first half of the year, while investment demand for gold climbed to a record high, with gold holdings in (ETF), a listed trading fund, reaching an all-time high at the end of June.

Measures taken by central banks and governments around the world in response to the epidemic, such as interest rate cuts and massive liquidity injections into the market, pushed global gold ETF inflows to a record high of 734 tonnes in the first half of the year, the World Gold Council ((WGC)) said on Thursday. Record inflows also boosted gold prices: dollar gold rose 17% in the first half of the year, while most

The price of gold, denominated in other currencies, also rose to an all-time high.

JuanCarlosArtigas, head of research at the World Gold Council, said gold performed exceptionally in the first half of the year. "it is worth noting that gold ETF inflows and price performance suggest that investors increasingly see gold as a strategic portfolio asset."

Initial jobless claims rose to 1.434 million in the week of July 25, up from 1.422 million the previous week and 17.018 million in the previous week, the Labor Department said on Thursday, suggesting that the US economic recovery has stalled.

For other precious metals, September silver futures fell 95.9 cents to $23.362 an ounce.

October platinum futures fell $45.90 to settle at $912.60 an ounce.

September palladium futures fell $126.30 to settle at $2134.90 an ounce.

In addition, COMEX9 copper for monthly delivery closed down half a cent to settle at $2.9140 a pound.

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