Gold futures closed lower on Thursday (Jan 26) as strong US economic data prompted investors to sell gold as a safe haven asset. In addition, the strength of the dollar also weighed on the gold market.
- Gold futures were down $12.6, or 0.65%, at $1,930/ounce.
- Silver futures, on the other hand, rose 7.9 cents, or 0.33%, to close at $24.02 an ounce.
- Platinum and palladium futures also fell, with Platinum down $23.1, or 2.21%, settling at $1,023/ounce and Palladium down $24.10, or 1.4%, settling at $1,663.80 an ounce.
The strong economic data from the United States, including better-than-expected GDP figures and durable goods orders, prompted investors to sell gold as a safe haven asset. December new home sales also rose 2.3% to 616,000 units, marking the third consecutive monthly increase. Additionally, the number of first-time applications for unemployment benefits fell 6,000 to 186,000 last week, defying analysts’ expectations for an increase.
Brian Landin, an analyst at Gold Newsletter, noted that the better-than-expected US GDP growth could push the Federal Reserve to aggressively raise interest rates, further weighing on the gold market.
The strength of the dollar also put pressure on the gold market, as the dollar index against a basket of six major currencies was up 0.19% to 101.8360 overnight. This makes gold contracts, priced in dollars, more expensive for investors holding other currencies.
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Friday, January 27, 2023