Gold Prepares to Wrap its Biggest Fall in Months

Gold Prepares to Wrap its Biggest Fall in Months

Gold receives a heavy blow from the bettering economic outlook in the world’s most powerful economy.

In the latest commodity charts, the bullion sheds another conservative yet significant 0.07% to $1,871.90 per ounce. 

This extends the sluggish performance after a 2% fall incurred in the previous session that sent the price back at square one.

In the early days of the week, the precious metal managed to ascend to the $1,900.00 per ounce. This proved to be a tough nut to crack for many months.

When it managed to break the level, so came the record-breaking economic performance in the United States.

In the latest data released by the Labor Department, the initial weekly jobless claims fell below 400,000 for the first time since the start of the pandemic.

The actual figures came at 385,000 citizens and came better than average analysts’ consensus. This also extends the major fall incurred in the week prior, where the indicator rested only a little above 400,000.

 Another downward pressure that consolidated around the same time is the improvement incurred on US private payroll data.

The country recorded a 978,000 job addition in May, also better than the 600,000 expected. 

Both results wear off inflation fears which have dominated the commodity market in the past weeks and thus came out supportive of the bullion.

As in a normal occurrence, gold’s demise means some serious muscle-flexing for the US Dollar. The two safe-haven assets enjoy inverse proportional movements against each other since the start of the pandemic.

The greenback rose by 0.7% to a three-week high of 90.57 after the release of the optimistic reports.

 

Silver Price Movements

Meanwhile, bulls still retain a firm grip on silver price movements as of the latest update from Asia’s metal commodity markets.

The industrial metal is swiftly approaching the $30.00 per ounce threshold in which it failed to settle above for so long.

On the downside, analysts see the $28.00 as the first resistance level followed by $27.77, should a bearish market catalyst suddenly enters the picture.

Overnight, silver managed to record a high of $28.37 an ounce. This shows that it stands on a sturdier ground versus the bettering economic indicators compared to the yellow commodity.

Meanwhile, platinum price is not behaving any better after bottoming $1,154.50 per ounce following a more than 0.50% fall.

In the coming days, investors will weigh heavily between inflation remarks and economic improvement.

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