U.S. economic data, dollar moves – About Your Online Magazine

Mariya Gordeyeva | Reuters

Gold prices fell on Wednesday the day after reaching a peak of more than a week, as strong economic data from the United States reinforced hopes for a speedy recovery, diminishing the appeal of the precious metal.

Gold in sight fell 0.4% to $ 1,737.01 an ounce at 15:14. EDT (1914 GMT). US gold futures closed down 0.1% at $ 1,741.6.

“If we get continued strength in economic reporting, I think we’ll see a much greater likelihood of rising interest rates … rising yields. This will ultimately have a negative impact on gold,” said Jeffrey Sica, founder of Circle Squared Alternative Investimentos.

Unprofitable gold is highly sensitive to higher rates, as they increase the opportunity cost of holding gold.

Data on Tuesday showed that job vacancies in the U.S. increased to a maximum of two years in February, while strengthening domestic demand helped hiring amid increased COVID-19 vaccination and additional government aid to the pandemic.

Meanwhile, the US Federal Reserve remained cautious about the continuing risks of the coronavirus pandemic and pledged to support monetary policy until a recovery was more secure, the minutes of the central bank meeting in March showed.

“There are not many indicators of what they intend to do (with respect to interest rates), which makes it obvious that, for any real clarity, we have to wait and see what happens to the economic news,” said Sica.

The International Monetary Fund raised its outlook for global economic growth again on Tuesday, predicting that world production would increase 6% this year, a rate not seen since the 1970s.

The S&P 500 contributed to the gains, while the dollar index advanced after the Fed released the minutes.

Among other precious metals, silver fell 0.2% to $ 25.12 an ounce. Palladium fell 2.3% to $ 2,622.71 an ounce, reaching a week-low of $ 2,592.

Platinum dropped 0.6% to $ 1,225.39 an ounce, having previously risen to $ 1,244.50, its highest value since February 25th.

Paula Fonseca