SMM: gold prices fell in New York on Thursday, with spot gold falling nearly $30 to a recent one-week low of $1894.74 / oz as better-than-expected US jobs data, rising US bond yields and doubts about whether an economic stimulus package could be introduced before the US presidential election put further pressure on gold prices.
The number of initial claims for unemployment benefits in the US fell by 55000 last week to a seasonally adjusted 787000, but the overall number is still relatively high, according to the data. Meanwhile, the dollar rebounded from a seven-week low against major currencies, making gold more expensive for investors holding other currencies after US President Donald Trump accused Democrats of being reluctant to reach a deal on a new coronavirus rescue bill.
Us bond yields have continued to climb recently, with 10-year yields hitting 0.851 per cent in intraday trading, the highest level since June 9.
House Speaker Pelosi said she and Treasury Secretary Nuchin are close to reaching consensus on a key element of the stimulus package, but there are still major differences between the two sides that need to be resolved through consultation. Pelosi said she and Nuchin were close to reaching an agreement on how to allocate funds for virus testing and contact tracking, which was a key part of the talks. She says three main sticking points remain unresolved: Democrats' demands for aid to state and local governments, aid funds for schools, and Republicans' insistence that employers be exempted from some liability.
COMEX December gold futures closed down 1.3% at $1904.60 an ounce. Edward Moya, a senior market analyst at OANDA, said the number of initial jobless claims was much better than expected, putting pressure on gold prices and improving the data, reducing the urgency of reaching a stimulus package now.
ABN Amro bank (ABN Amro) said gold prices are likely to remain near the 1900 mark in the fourth quarter. The bank expects gold prices to remain around $1900 an ounce in the fourth quarter. It is unlikely to change much for the rest of the year, but it is still bullish in the long run. Gold prices are expected to break through $2000 an ounce again in 2021, a record high.
Goldman Sachs expects gold to reach $2300 an ounce in 12 months and said there could be a bull market in commodities next year.
