* Platinum eases after scaling over one-month peak
* Palladium hits a one week low of $2,592/oz (Adds comment, recasts, updates prices)
By Shreyansi Singh
April 7 (Reuters) - Gold prices fell on Wednesday a day after hitting a more than one-week peak, as strong economic data from the United States bolstered hopes of a swift recovery dimming the precious metal's appeal.
"If we get continued strength in economic reports I think we are going to see much greater likelihood of interest rates increasing ... yields increasing. That ultimately is going to have negative impact on gold," said Jeffrey Sica, founder of Circle Squared Alternative Investments.
Non-yielding bullion is highly sensitive to higher rates, as they increase the opportunity cost of holding gold. USD/
Data on Tuesday showed U.S. job openings rose to a two-year high in February, while strengthening domestic demand helped hiring amid increased COVID-19 vaccinations and additional pandemic aid from the government. U.S. Federal Reserve remained cautious about the continuing risks of the coronavirus pandemic and committed to pouring on monetary policy support until a rebound was more secure, minutes of the central bank's March meeting showed. not much indicative of what they intend to do (with regards to interest rates) which makes it obvious that for any real clarity we have to wait and see what happens with economic news," Sica said.
The International Monetary Fund raised its outlook for global economic growth again on Tuesday, forecasting worldwide output would rise 6% this year, a rate not seen since the 1970s. S&P 500 added to gains, while the dollar index .DXY inched up after the Fed released the minutes. USD/ .N
Platinum XPT= fell 0.6% to $1,225.39 per ounce, having earlier risen to $1,244.50, its highest since Feb. 25.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.