Gold slips from nearly 3-week high
Gold futures prices on Thursday pulled back from their highest finish in nearly three weeks with more potentially market-moving economic data due to follow what was a hotter-than-expected headline inflation reading.
April gold GCJ8, -0.29% fell $4.40, or 0.3%, to $1,353.70 after a settlement at $1,358 Wednesday. The gold-backed exchange-traded fund SPDR Gold Shares GLD, +1.71% was little changed premarket, while the VanEck Vectors Gold Miners ETF GDX, +4.59% ) slipped 0.1%.
Gold slipped even as the ICE U.S. Dollar Index DXY, -0.22% , a measure of the currency against six main rivals, fell 0.4% to 88.756. Precious metals, which are often pegged to dollars, tend to rise when the buck weakens because a falling dollar can make buying those assets cheaper for investors using strengthening monetary units.
The 10-year Treasury note yield TMUBMUSD30Y, +0.25% added 2.1 basis points to 2.934%, extending its highest yield level since around January 2014, according to WSJ Market Data Group.
A report on weekly jobless claims is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting 230,000 claims.
Also at 8:30 a.m., February releases for producer prices, the Empire State Manufacturing Survey and the Philadelphia Federal Reserve’s business-outlook survey are due.
See: MarketWatch’s Economic Calendar
A January report on industrial production is scheduled for 9:15 a.m. Eastern, with 0.3% growth expected, and a February figure for a housing-market index is slated to come at 10 a.m. Eastern.
Expectations of a possible fourth interest rate increase this year by the Federal Reserve grew after the inflation figures and after the Fed shared its forecast of an inflation pickup later this year. Nevertheless, investors will still watch for signs of a sustainable rise in consumer prices.
Rising yields, in theory, should detract from the appetite for gold because precious metals don’t bear a yield. However, accelerating inflation could also provide a lift for gold because it is often viewed as a hedge against inflation. Gold had been moving higher over the last few days after the futures contract erased 1.6% last week in its worst performance in two months.
Read : This chart warns that the 30-year downtrend in interest rates may be over
In other metals trading, March silver SIH8, -0.58% fell 7cents, or 0.4%, to $16.805 an ounce, while the silver-focused iShares Silver Trust SLV, +1.86% fell 0.2%.
March copper HGH8, -0.34% fell 1 cent, or 0.4%, to $3.224 a pound, April platinum PLJ8, +0.30% added $5.10, or 0.5%, to $1,004.90 an ounce and March palladium PAH8, +1.22% rose $15.45, or 1.5%, to $1,013.45 an ounce.
Metals and Minerals