Gold plunges to 7-month low on Fed stimulus concerns
Gold futures extended heavy losses from the previous session on Thursday to fall to the lowest level since July, as speculation the Federal Reserve might end its bond-buying program sooner-than-expected dampened the appeal of the precious metal.
Prices came under additional pressure from a weak technical outlook and market talk that a large hedge fund was liquidating positions.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,564.60 a troy ounce during European morning trade, down 0.85% on the day.
Prices fell by as much as 1% earlier in the session to hit a daily low of USD1,554.80, the weakest level since July 12.
Gold prices were likely to find near-term support at USD1,548.45 a troy ounce, the low from June 28 and resistance at USD1,609.00, Wednesday’s high.
Gold futures sold off after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets.
Several Fed officials said the central bank should be prepared to vary the pace of the asset-purchase plan depending on the outlook or how the program was working. One wanted to vary it on a meeting-by-meeting basis.
Prices came under additional pressure from a weak technical outlook and market talk that a large hedge fund was liquidating positions.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,564.60 a troy ounce during European morning trade, down 0.85% on the day.
Prices fell by as much as 1% earlier in the session to hit a daily low of USD1,554.80, the weakest level since July 12.
Gold prices were likely to find near-term support at USD1,548.45 a troy ounce, the low from June 28 and resistance at USD1,609.00, Wednesday’s high.
Gold futures sold off after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets.
Several Fed officials said the central bank should be prepared to vary the pace of the asset-purchase plan depending on the outlook or how the program was working. One wanted to vary it on a meeting-by-meeting basis.
Copper futures fall to 8-week low in risk-off trade
Copper futures were down for the fourth consecutive day on Thursday, dropping to the lowest level in eight weeks as appetite for growth-linked assets weakened following the release of downbeat euro zone data.
Prices were already on the back foot amid concern the Federal Reserve may scale back its stimulus program and market talk that a large hedge fund was liquidating positions in the commodity market.
Prices were already on the back foot amid concern the Federal Reserve may scale back its stimulus program and market talk that a large hedge fund was liquidating positions in the commodity market.
Crude oil futures at session lows following euro zone PMIs
Crude oil futures fell to the lowest level of the session during European morning hours on Thursday, after data showed that euro zone manufacturing data came in below expectations in February.
Prices were already on the back foot amid concern the Federal Reserve may scale back its stimulus program and market talk that a large hedge fund was liquidating positions
Prices were already on the back foot amid concern the Federal Reserve may scale back its stimulus program and market talk that a large hedge fund was liquidating positions
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