SMM: COMEX gold futures fell to their lowest level in four months on Monday as better-than-expected US corporate activity data and optimism about novel coronavirus's vaccine trial boosted hopes for a faster economic recovery.
Monthly gold futures in COMEX12, the most actively traded, fell $34.60, or 1.9%, to settle at $1837.80 an ounce at 13:30 in New York.
December silver futures fell 73 cents to settle at $23.633 an ounce.
January platinum futures fell $25.50 to settle at $931.7 an ounce.
December palladium futures rose $30.50 to settle at $2353.80 an ounce.
Among other COMEX metals, the December copper contract fell 3. 3 cents to settle at $3.2580 a pound.
Edward Moya, senior market analyst at Oanda (OANDA), said: "Gold fell below the key level of $1850 after a strong purchasing managers' index released in the United States damped demand for economic stimulus. No one expected services and manufacturing data to be so strong. "
Us corporate activity expanded at its fastest pace in more than five years in November, boosting investor optimism about the health of the US economy, according to data released on Monday.
IHS Markit's manufacturing and services purchasing managers' index, (PMI), both beat the most optimistic forecasts in the survey. The survey forecasts a slowdown in manufacturing and services purchasing managers' indices, in contrast to data showing that economic momentum is slowing after a strong rebound in momentum from a historic spring decline in the third quarter.
The upbeat figures came after British drugmaker AstraZeneca (AstraZeneca) said its vaccine was 90 per cent effective and had no serious side effects.
The stronger dollar further undermines the attractiveness of gold.
The dollar rebounded from a nearly three-month low against a basket of currencies on Monday as data showed that US corporate activity expanded at its fastest pace in more than five years in November after the dollar index hit strong technical support.
Thanks to its attractiveness as a safe asset against inflation and currency depreciation, gold has risen more than 21 per cent so far this year.
Stonex analyst Rhona O'Connell said in a report: "although we do
Gold prices are expected to be on the defensive when the global economy begins to show a sustainable recovery, but the driving force behind gold has not completely disappeared. "
Gold prices have been falling recently, but Edward Moya, a senior market analyst at Oanda, said the upward trend has not been broken and is expected to rise to $2300 an ounce in the first half of next year.
