Gold slid into the weekend as market participants shrugged off poor US data and decided to invest elsewhere.
Gold for June delivery on the Comex division of the New York Mercantile Exchange fell $7.90 to close at $1,174.50 per ounce, the lowest price since March 20. Trade ranged from $1,168.40 to $1,184.40.
“Precious metals remained soft. Yesterday’s positive jobs data from the US drove the market through $1,200 per ounce and the weakness continued today as investors turned back to equities in consideration of US interest rate rises,” Sucden Financial said.
Equities and other risk assets, meanwhile, posted solid gains today. The Dow Jones industrial average and S&P 500 were last up 0.93 percent and 0.94 percent respectively, while the the most-actively traded Comex copper contract climbed to $2.93 per pound, up 4.45 cents or 1.54 percent.
The euro was last 0.31 percent weaker at 1.1188 against the dollar.
“Precious metals complex continues to whipsaw at the bottom of the $1,175-$1,225 range,” Triland Metals said. “There seems to be some physical interest in gold and there is a noticeable pull back in the nearby gold forwards. Perhaps an indication that these areas may still be seen as good long term entry levels.”
In data today, US data missed with April ISM manufacturing PMI coming in at 51.5, off a 52.1 forecast. Construction spending in March was down 0.6 percent, while estimates predicted a 0.5 gain.
In other precious metals, Comex silver for May delivery was down $0.16 cents at $15.965 per ounce. Trade ranged from $15.905 to $16.19. Platinum for June delivery on the Nymex declined $11.70 to $1,128.70, while the most actively traded palladium contract was at $772.15 an ounce, down $4.35.
Light sweet crude (WTI) futures fell $0.52 or 0.9 percent to $59.10 per barrel in the most active contract.
(Editing by Tom Jennemann)
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