(Reuters) – Gold costs fell sharply on Thursday, drifting away from a document peak hit earlier this week, as a stoop in U.S. GDP and President Donald Trump’s tweet about delaying the upcoming U.S. elections triggered a sell-off in monetary markets.
FILE PHOTO: Gold bars are seen on the Austrian Gold and Silver Separating Plant ‘Oegussa’ in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger
Spot gold dipped 1.2% to $1,947.28 per ounce by 11:54 a.m. EDT (1554 GMT), whereas U.S. gold futures slid 0.7% to $1,940.2.
“Individuals are panicking and fleeing the fairness markets and also you’re seeing that weighing on metals costs,” stated Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
A historic plunge in second-quarter GDP and a tweet by President Donald Trump elevating the potential of delaying the U.S. November presidential elections weighed on U.S. shares and Treasury yields.
Bullion was additionally pressured because the greenback stalled its slide after the U.S. Federal Reserve stated it stays dedicated to conserving rates of interest close to zero so long as vital for the financial system to get better.
“The Fed didn’t actually lay out a particular roadmap so far as the way to get us all the way in which again up, they simply stated they might be accommodative,” Streible added.
The non-yielding steel, which advantages from low rates of interest, jumped to a document excessive of $1,980.57 per ounce on Tuesday and is up over 28% to this point this yr, supported by robust funding demand.
“We’ve seen gold’s positioning has began to bloat not solely from the institutional facet, however extra not too long ago we now have actually seen a surge in retail flows,” stated Daniel Ghali, commodity strategist at TD Securities.
“In order that’s actually assigned to speculative frenzy going down in gold in the intervening time … we predict a interval of consolidation right here earlier than gold continues to rally later within the yr.”
Different metals had been additionally decrease, with silver shedding about 5% to face at $23.19 per ounce, platinum was down 3.6% at $891.33 and palladium dropped 3.8% to $2,075.55.
Reporting by Swati Verma and Nakul Iyer in Bengaluru, extra reporting by Diptendu Lahiri; Modifying by Tom Brown