Latest News

Metals Stocks: Gold prices end lower after brief BoE-inspired reprieve


Gold futures weakened on Thursday, after rising to their highest level in nearly a week, as Treasury yields resumed their march higher following Tuesday’s precipitous pullback.

Price action

Gold futures

expiring in December retreated $11, or 0.6%, to $1,659 per ounce on Comex.

Silver futures

expiring in December were down 16 cents, or 0.9%, to $18.73 per ounce.

Palladium futures

expiring in December rose $50, or 2.3%, to $2,220, while platinum futures

expiring in January were flat at $865 per ounce.

Copper futures

for December delivery climbed 6 cents, or 1.7%, to $3.414 per pound.

What’s happening

Gold received a brief reprieve on Wednesday as U.S. stocks soared and Treasury yields recorded their biggest daily drop in more than two years following the Bank of England’s announcement that it would do “whatever it takes” to calm the gilt market which boosted fixed income markets in Europe and the U.S.

See: Here are two reasons the Bank of England had to step in and buy bonds

Rupert Rowling, a market analyst at Kinesis Money, attributed gold’s move back toward its lowest level in more than two years to the latest wave of hawkish rhetoric from senior Federal Reserve officials.

“The Fed’s hawkish policy of raising interest rates has had a doubly negative impact on gold as not only has it made the non-yield bearing asset less attractive, it has also helped strengthen the US dollar to record levels, which given gold’s typically inverse correlation with the greenback has exacerbated its decline,” Rowling wrote in an emailed note to clients.

: Once the face of youth, millennials confront gloomy retirement prospects

Previous article

Market Snapshot: Dow tumbles 600 points as relief rally after Bank of England intervention fades

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News