SMM: COMEX futures fell on Thursday to close at the lowest level in a week as positive US economic data strengthened hopes of a rapid economic recovery and weakened the attractiveness of safe-haven gold.
At the same time, the U. S. stock market has fallen sharply, which may prompt some investors to sell gold to make up for losses on other assets.
Monthly gold futures in COMEX12, the most actively traded, fell $6.90, or 0.4%, to settle at $1937.80 an ounce at 13:30 new York time.
Other precious metals fell across the board, with December silver futures falling $0.520 to settle at $26.875 an ounce.
October platinum futures fell $14.50 to settle at $889.6 an ounce.
December palladium futures rose $54.10 to settle at $2321.60 an ounce.
In addition, COMEX12 copper for monthly delivery closed down 4.55 cents at $2.9750 a pound.
Gold was overshadowed by a drop in initial jobless claims announced on Thursday and improved manufacturing data released earlier this week, said DavidMeger, head of metals trading at HighRidgeFutures.
The number of US jobless claims fell below 1 million last week for the second time since the novel coronavirus epidemic broke out in the US, but that does not mean a strong recovery in the labour market, as the decline largely reflects a change in statistical methodology. to cope with seasonal fluctuations in the data.
But data released earlier this week boosted optimism about a steady recovery. New orders for US manufactured goods rose more than expected in July, while US manufacturing data showed manufacturing activity accelerated to a nearly two-year high in August.
However, Fed (FED) officials say there is a need to further support the economy. Chicago Fed President John Evans on Thursday called on Congress for more financial aid and hinted that U.S. monetary policy would be further relaxed and interest rates would remain ultra-low for years to help the economy regain its pre-pandemic momentum.
Gold prices have risen more than 27 per cent this year as the coronavirus pandemic has hit the global economy and boosted unprecedented stimulus measures.
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