Chicago, The Indonesia Post – Gold prices slumped in late trading Tuesday (Wednesday morning WIB), extending losses for the third straight session, pressured by stronger-than-expected US economic data but a weaker US dollar held back the yellow metal’s losses further.
The most active gold contract for December delivery on the Comex division of the New York Exchange, fell 13.4 dollars, or 0.77 percent, to close at 1,736.30 dollars an ounce. Gold futures settled at their lowest level since late July.
Gold futures edged down 0.10 dollars, or 0.01 percent, to 1,749.70 dollars on Monday (29/8/2022), after dropping 21.60 dollars, or 1.22 percent, to 1,749.80 dollars on Friday. (26/8/2022), and rose 9.90 US dollars or 0.56 percent to 1,771.40 US dollars on Thursday (25/8/2022).
The US dollar weakened on Tuesday (30/8/2022) as the euro gained momentum. The greenback retreated against the euro on expectations that the European Central Bank (ECB) will tighten monetary policy more aggressively than previously thought.
But the outlook for the yellow metal is heavily pressured by the prospect of higher US interest rates. Gold slumped last week after the Fed signaled it has no plans to loosen its path of monetary tightening. The move pushed the dollar to a 20-year peak, and also raised short-term government bond yields.
Positive US economic data released on Tuesday (30/8/2022) pressured gold prices. The Conference Board’s consumer confidence index rose in August to 103.2 from 95.3 in July.
The US Department of Labor reported that US job openings rose unexpectedly in July, with the number of available positions inching up to 11.2 million, exceeding all estimates and from a revised 11 million in June.
In a discussion with the Huntington Regional Chamber of Commerce in Huntington, West Virginia, Tuesday (30/8/2022), Richmond Federal Reserve President Tom Barkin said: “We are committed to controlling inflation and there is a way to get there.”
He also acknowledged that a recession was an obvious risk as the Federal Reserve tightened monetary policy.
Investors are now waiting for US payroll data to be released on Friday (2/8/2022). Strength in the labor market will likely give the Fed more room to raise rates aggressively.
Another precious metal, silver for December delivery fell 38.3 cents, or 2.05 percent, to close at 18.287 dollars an ounce. Platinum for October delivery fell 22.2 dollars, or 2.6 percent, to close at 832.10 dollars an ounce. (mhn/bbs)
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