PRECIOUS-Gold slips as strong U.S. data dims safe-haven appeal

  • Reuters
  • Commodities News
PRECIOUS-Gold slips as strong U.S. data dims safe-haven appeal
Credit: © Reuters.

* Investors eye U.S. Fed meeting minutes at 1800 GMT

* Asian shares hit three-week high

* U.S. job openings rise to 2-year high in February (Adds comments, updates prices)

By Diptendu Lahiri

April 7 (Reuters) - Gold prices dropped on Wednesday as expanded coronavirus vaccinations and a slew of upbeat data from the United States sparked hopes about a faster economic rebound, weighing on the metal's safe-haven appeal.

Spot gold XAU= was down 0.2% to $1,740.37 per ounce by 0634 GMT. U.S. gold futures GCv1 slipped 0.2% to $1,739.40 per ounce.

"The better-than-expected economic data from the United States is not allowing gold prices to go above a certain level," said Sunilkumar Katke, head of currencies and commodities at Axis Securities.

In the latest round of robust economic data, work opportunities in the United States reached a two-year peak in February, as hiring grew in response to rising domestic demand, increased COVID-19 vaccinations, and additional government pandemic assistance. International Monetary Fund also raised its outlook for global economic growth, forecasting worldwide output would rise 6% this year. was also pressured as Asian shares climbed to three-week highs, reducing investors' appetite for bullion. MKTS/GLOB

"Once gold touches the $1,750 resistance level, technical longs will be initiated and that might push prices up to $1,780," Katke added.

Bullion prices rose to their highest level since March 25 at $1,745.15 on Tuesday, as U.S. Treasury yields eased and the dollar fell to a two-week low against a basket of currencies. USD/ US/

"Softening of the yields points towards a situation where central banks around the globe will remain dovish and that will support gold at least in the medium term," said Stephen Innes, chief global market strategist at financial services firm Axi.

Market participants now await the release of minutes from the U.S. Federal Reserve's March 16-17 policy meeting at 1800 GMT.

Among other metals, silver XAG= fell 0.4% to $25.06 per ounce and palladium XPD= was down 0.3% to $2,677.16, while Platinum XPT= rose 0.5% to $1,238.72.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles