Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold stays lower after U.S. data, ECB decision

Published 07/20/2017, 08:58 AM
Updated 07/20/2017, 08:58 AM
© Reuters.  Gold slips after U.S. data, ECB decision

© Reuters. Gold slips after U.S. data, ECB decision

Investing.com - Gold prices stayed lower in North American trade on Thursday, holding on to earlier losses as investors digested the latest batch of U.S. economic data as well as a policy decision by the European Central Bank.

Comex gold futures were at $1,238.91 a troy ounce by 8:55AM ET (1255GMT), down $2.90, or around 0.2%. Gold prices finished a few cents higher on Wednesday, extending their streak of gains to a fourth session.

Data released earlier showed that the number of people who filed for unemployment assistance in the U.S. fell more than expected last week, nearing the lowest level in more than four decades.

A separate report revealed that manufacturing activity in the Philadelphia region slowed in July.

Gold prices have been well-supported in recent sessions amid fading expectations for another rate hike by the Federal Reserve this year.

Futures traders are pricing in less than a 40% chance of a rate hike by December, according to Investing.com’s Fed Rate Monitor Tool, as recent dovish comments from Chair Janet Yellen and soft inflation data raised doubts over whether policymakers will be able to stick to their planned tightening path.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

Meanwhile, the ECB made no changes to its record-low interest rates and announced no new measures on Thursday, while leaving the door open to the possibility of further increasing asset purchases.

Earlier in the session, the Bank of Japan kept monetary policy steady as a two-day meeting concluded. The central bank also cut its inflation forecasts for fiscal years 2017/2018 and 2018/2019.

Also on the Comex, silver futures dipped 2.9 cents, or roughly 0.2%, to $16.26 a troy ounce, after hitting a more than two-week high of $16.34 a day earlier.

Among other precious metals, platinum was down 0.3% at $921.50, while palladium dipped 1.2% to $848.35 an ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.