Gold Slumps as Progressing U.S. Economy Turn Down Hedge Demand
April 4, 2014 8:27 am
Gold futures dive lower for the sixth time in seven sessions as indications of rapid U.S. economic development increased projections for the Federal Reserve to increase interest rates, curbing demand for the metal as a store of worth.
U.S. payrolls may have boosted by 200,000 in March, the most since November, according from a Bloomberg survey of economists ahead of government data tomorrow. Service industries progressed at a more rapid pace in March, the Institute for Supply Management announced today. Gold has sagged down 4.2 percent since March 19, when Fed Chair Janet Yellen said the central bank may end bond purchasing this fall and lift borrowing costs six months after that.
“The economy is definitely improving, and the payrolls number is very important for the gold market,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “The safe-haven status is disappearing.”
Gold futures for June delivery depreciated 0.5 percent to finish at $1,284.60 an ounce at 1:52 p.m. on the Comex in New York. On April 1, the metal achieved $1,277.40, the weakest for a most-active contract since February 11.
Last year, gold plunged down 28 percent, the most since 1981, amid a U.S. equity advance to a record and concern that the Fed would slow the pace of financial stimulus. The metal skyrocketed 70 percent from December 2008 to June 2011 as the central bank pumped more than $2 trillion into the monetary system and pared interest rates to a record in a bid to help lift the economy.
Mine Strike
On the New York Mercantile Exchange, platinum futures for July delivery bolstered 0.5 percent to $1,445.50 an ounce. The financial value skyrocketed for the fifth consecutive session, the lengthiest surge since February 14.
Palladium futures for June delivery inched up 0.1 percent to $788.85 an ounce. This year, the financial value has bolstered 9.8 percent, topping advances among precious metals.
More than 70,000 members of the Association of Mineworkers and Construction Union have been on strike since January 23 at mines in South Africa, the world’s top platinum producer.
The leaders of Lonmin Plc and the union debated before hundreds of miners at a Johannesburg rally today, the first such display since the beginning of the strike that crippled output.
The Association of Mineworkers and Construction Union led more than 70,000 workers on strike in South Africa since January 23 at mines of the largest platinum generators. The leaders of Lonmin Plc and its primary union debated head to head in front of hundreds of miners at a Johannesburg rally today.
Lonmin, Anglo American Platinum Ltd. and Impala Platinum Holdings Ltd. have provided notices stating that they possibly won’t fulfill some supply contracts because of the strike.
Silver futures for May delivery slumped 1.2 percent to $19.805 an ounce on the Comex.
The material has been provided by InstaForex Company – www.instaforex.com
Gold futures dive lower for the sixth time in seven sessions as indications of rapid U.S. economic development increased projections for the Federal Reserve to increase interest rates, curbing demand for the metal as a store of worth.
U.S. payrolls may have boosted by 200,000 in March, the most since November, according from a Bloomberg survey of economists ahead of government data tomorrow. Service industries progressed at a more rapid pace in March, the Institute for Supply Management announced today. Gold has sagged down 4.2 percent since March 19, when Fed Chair Janet Yellen said the central bank may end bond purchasing this fall and lift borrowing costs six months after that.
“The economy is definitely improving, and the payrolls number is very important for the gold market,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “The safe-haven status is disappearing.”
Gold futures for June delivery depreciated 0.5 percent to finish at $1,284.60 an ounce at 1:52 p.m. on the Comex in New York. On April 1, the metal achieved $1,277.40, the weakest for a most-active contract since February 11.
Last year, gold plunged down 28 percent, the most since 1981, amid a U.S. equity advance to a record and concern that the Fed would slow the pace of financial stimulus. The metal skyrocketed 70 percent from December 2008 to June 2011 as the central bank pumped more than $2 trillion into the monetary system and pared interest rates to a record in a bid to help lift the economy.
Mine Strike
On the New York Mercantile Exchange, platinum futures for July delivery bolstered 0.5 percent to $1,445.50 an ounce. The financial value skyrocketed for the fifth consecutive session, the lengthiest surge since February 14.
Palladium futures for June delivery inched up 0.1 percent to $788.85 an ounce. This year, the financial value has bolstered 9.8 percent, topping advances among precious metals.
More than 70,000 members of the Association of Mineworkers and Construction Union have been on strike since January 23 at mines in South Africa, the world’s top platinum producer.
The leaders of Lonmin Plc and the union debated before hundreds of miners at a Johannesburg rally today, the first such display since the beginning of the strike that crippled output.
The Association of Mineworkers and Construction Union led more than 70,000 workers on strike in South Africa since January 23 at mines of the largest platinum generators. The leaders of Lonmin Plc and its primary union debated head to head in front of hundreds of miners at a Johannesburg rally today.
Lonmin, Anglo American Platinum Ltd. and Impala Platinum Holdings Ltd. have provided notices stating that they possibly won’t fulfill some supply contracts because of the strike.
Silver futures for May delivery slumped 1.2 percent to $19.805 an ounce on the Comex.
The material has been provided by InstaForex Company – www.instaforex.com
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