PRECIOUS-Gold slips as strong U.S. data dims safe-haven appeal
Reuters
Published Apr 07, 2021 12:10
Updated Apr 07, 2021 15:00
* 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. The International Monetary Fund also raised its outlook for
global economic growth, forecasting worldwide output would rise
6% this year. Gold 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.
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Written By: Reuters
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