Gold prices pull back after best day of August
NEW YORK (August 24) Gold futures traded modestly lower on Thursday after four straight days of gains as traders awaited a speech from Federal Reserve Chairman Jerome Powell due Friday.
A day earlier, a sharp drop in bond yields in Europe and the U.S. in the wake of weak economic data sparked the sharpest rise in prices of the most-active gold contract since the start of August.
Price action
- Gold futures for December delivery GC00, -0.35% GCZ23, -0.35% fell by $2.50, or 0.1%, to $1,945 per ounce on Comex.
- Silver futures for September delivery SI00, -0.73% SIU23, -0.73% declined by 15 cents, or 0.6%, to $24.25 per ounce.
- October platinum PL00, -0.32% PLV23, -0.32% fell by $6, or 0.6%, to $932 per ounce, while September palladium PA00, -2.84% PAU23, -2.84% was off by $3.90, or 0.3%, to $1,277.50 per ounce.
- Copper prices for December delivery HGU23, -0.98% fell by 3 cents, or 0.8%, to $3.80 per pound.
Market drivers
Gold prices benefited from a drop in European and U.S. bond yields on Wednesday to their lowest levels in a week, but prices of the yellow metal were seeing a modest pullback Thursday as yields crept higher once again. A stronger U.S. dollar also weighed on the yellow metal.
“Gold was one of the main beneficiaries of the breakdown in real yields and the ensuing retreat in the dollar,” said Marios Hadjikyriacos, senior investment analyst at XM, in emailed commentary.
The yield on the 10-year Treasury note BX:TMUBMUSD10Y rose by 4 basis points to 4.223% on Thursday. The ICE U.S. Dollar Index DXY, a gauge of the greenback’s strength against other major currencies, rose by 0.3% at 103.72.
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