Gold prices collapsed further on Friday morning session follow its previous loss on Thursday as strong US jobless claims figure and a stronger dollar were against the bullion.
Spot gold was last at $1,082/1,082.8 per ounce after hitting a new five-year low at $1077.5 eariler, down $8.4 from yesterday’s close – US dollar index climbed 0.09 to 97.3.
Gold failed to sustain over the psychological $1,100/oz as strong US data yesterday continued to put downside pressure on the precious metals.
“Investment sentiment remains negative and near term sentiment also remains negative. The gold market is not holding over USD1,100/oz, but it is not crashing either. For much of the year, physical demand in Asia has been a little disappointing,” said HSBC.
In data, the number of people seeking unemployment aid in the United States plunged to its lowest in nearly 42 years at 255,000 for the latest week against expectations of 279,000.
“With the dollar already elevated, following comments by the Fed Chair Janet Yellen that a raise to the Federal Funds rate is likely to be appropriate this year, we would expect this release to reinforce the downside trajectories of the metals which have been consolidating following recent sell-offs,” FastMarkets analyst Tom Moore said.
In equities, key Asian stock indexes were mostly down on Friday morning despite CSI300 – it increased 0.57 percent to 4,374.85, down more than 12 percent month-on-month (MOM). Hang Seng Index declined 0.9 percent to 25,169.97 while NIKKEI 225 nudged down 0.62 percent to 20,555.95.
Silver followed the drop in gold as spot prices were last at $14.59/14.64 per ounce after hitting its lowest since August 2009 at $14.5 per ounce.
In other metals, platinum was still trading below $1,000 per ounce, last at $970/975 fell $7. Palladium nudged down $3 to $613/618 per ounce.
Today, market awaits flash manufacturing PMI in France, Germany and the US as well as new home sales in the States.
On the Shanghai Futures Exchange (SHFE), gold for December delivery was last at 218.7 yuan per gram.
The post Gold slumps to five-year low on strong US data appeared first on The Bullion Desk.
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