Gold Futures Decline on Weak Economic Data

Gold futures fell on Thursday in reaction to lower than expected US economic data which also affected the US stock markets. As per the latest data, payrolls in private sector increased by 133,000 in May as compared to expected increase of 150,000. Moreover, the US Commerce Department also released its data on jobless claims which increased to their highest level in last five weeks. The economic growth rate stood at 1.9 percent per annum for the first quarter in United States as compared to forecast of 2.2 percent. Further to add to bearish sentiments purchasing managers’ index for Chicago area also declined in May and reached its lowest level since September, 2009.

Gold futures contract for August delivery declined 0.1 percent or $1.50 to settle at $1,564.20 per ounce on the Comex division of the New York Mercantile Exchange. The respective contract touched the intraday high of $1,574.60 per ounce while its intraday low was at $1,533 per ounce. This shows that the precious metal remained volatile. Looking at its month’s performance, gold has declined 6 percent in May. Analysts are of the opinion that bearish movement in commodities is not over yet. The US dollar also closed lower on Thursday but failed to support gold and other commodities. The dollar index DXY which tracks the US dollar’s performance versus its six major rivals fell to 83.022 on Thursday as compared to 83.053 on Wednesday’s North American trading session.

Among other metals, silver futures for July delivery declined 0.8 percent or $0.22 to settle at $27.76 per once while fell 11 percent in the month of May. Copper futures for July slipped $0.02 to settle at $3.37 per pound. Platinum futures contract for July gained 1.2 percent or $16.40 to $1,417.60 per ounce while was down 10 percent for the month of May.


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