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Gold Futures Snap 4-day Winning Streak, Settle Notably Lower

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Gold Futures Snap 4-day Winning Streak, Settle Notably Lower

After finishing at fresh near 9-year high on Wednesday, gold futures turned weak on some profit taking on Thursday and eventually ended the session notably lower.

The dollar’s rebound from recent weakness contributed significantly to gold’s decline. However, uncertainty about the pace of economic recovery amid continued surge in coronavirus cases limited the yellow metal’s slide.

The dollar index, which rose to 96.80 around late morning, was last seen at 96.73, up 0.31% from previous close.

The United States reported more than 60,000 new Covid-19 cases on Wednesday, the biggest increase ever reported by a country in a single day.

Federal Reserve officials on Wednesday suggested the U.S. recovery may be stalling, raising doubts about its durability.

Meanwhile, the United States is preparing to take additional actions against China, the White House has said, without giving further details.

“I’m not going to get ahead of the president on what our actions on China will be, but you will be hearing about some upcoming actions that pertain to China. So, I can confirm that,” White House Press Secretary Kayleigh McEnany said.

Gold futures for August ended down $16.80 or about 0.9% at $1,803.80 an ounce.

On Wednesday, gold futures for August finished at $1,820.60 an ounce, the best close since mid-September 2011.

Silver futures for September ended down $0.199 or 1% at $18.962 an ounce, while Copper futures for September settled at $2.8385 per pound, gaining $0.0145 or 0.5%.

Data released by the Labor Department showed first-time claims for U.S. unemployment benefits declined by more than anticipated in the week ended July 4th. The report said initial jobless claims tumbled to 1.314 million, a decrease of 99,000 from the previous week’s revised level of 1.413 million.

Economists had expected jobless claims to slump to 1.375 million from the 1.427 million originally reported for the previous week.

The Labor Department said the less volatile four-week moving average also fell to 1,437,250, a decrease of 63,000 from the previous week’s revised average of 1,500,250.

The material has been provided by InstaForex Company – www.instaforex.com