Gold prices fell heavily for the second consecutive day as a general malaise has entered the market.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last down $9.50 to $1,272.9 per ounce. Trade has ranged from $1,168.4 to $1,184.4, while remaining at the lowest price since March 6.
Market observers are citing the lack of interest from the investment community – even a sinking dollar and generally poor US data hasn’t buoyed the yellow-metal.
“The general feeling however is that with the slowdown in US growth, the rate rise will be later rather than sooner and as such the dollar has remained weak,” Marex Spectron said. “This puts the precious drop into perspective and shows how disinterested the investment community is with the bullion market in general.”
The euro was last 0.34 percent stronger at $1.1259 against the dollar.
The Federal Open Market Committee (FOMC) said on Wednesday that declining economic growth was because of “transitory factors” like the harsh winter. Market participants lview the FOMC stance as a sign rates will eventually rise this calendar year, causing a sell-off of gold.
In Japanese data, final manufacturing PMI was 49.9 besting the 49.8 forecast. Household spending fell 10.6 percent in March, but forecasters pegged a decline of 11.7 percent. Unemployment rate rose 3.4 percent, barely off the 3.5 percent mark.
National core CPI year-over-year was 2.2 percent for April, with a two percent forecast. Finally, Tokyo core CPI year-over-year for April declined 0.4 percent, while 0.5 percent was forecast.
In China, official manufacturing PMI for April came in above the forecast at 50.1, edging the 50 prediction.
Meanwhile in Europe, Germany’s DAX and France’s CAC-40 were up 0.2 percent and 0.1 percent respectively.
In other precious metals, Comex silver for May delivery was down 14 cents at
$16.11 per ounce. Trade has ranged from $15.96 to $16.19.
Platinum for June delivery on the Nymex declined $11.20 to $1,129.20, while the most actively traded palladium contract was at $771.10 an ounce, down $5.40.
Light sweet crude (WTI) futures fell $0.42 or 0.7 percent to $59.21 per barrel in the most active contract.
(Editing by Tom Jennemann)
The post Gold slumps for consecutive days amid disinterest appeared first on The Bullion Desk.
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