Gold prices are dropping globally ahead of the release of economic data
Gold prices fell globally in trading today, Thursday, after hitting a 4 and a half month high in the previous session, as investors awaited the main economic readings from the United States.
The price of futures contracts for the precious metal for next August delivery was $ 1,901.90 an ounce, down 0.10%, or $ 1.90.
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In contrast, the spot price of gold increased by 0.16%, or $ 3.07, to reach the point of $ 1899.74 an ounce.
At that time, the US dollar index, which measures the performance of the green paper, rose marginally against a basket of 6 major currencies, marginally, by 0.01% at 90.036 points.
Record US Treasury yields rose to 1.58%, increasing the opportunity cost of owning gold without interest.
Fed Vice Chairman of Supervision Randall Quarles said on Wednesday that he was ready to open talks about cutting the central bank's emergency support measures, just to stress the need for patience as well.
Fed officials played down the rising price pressures and reiterated their support for keeping monetary policy loose for some time.
Market participants are now awaiting key US economic data, including GDP, unemployment claims and consumer spending.
It is noteworthy that the Central Bank of South Korea kept its monetary policy unchanged on Thursday, as increased cases of Coronavirus threatened the export-led economic recovery.
European Central Bank Board Member Fabio Panetta said on Wednesday that the European Central Bank should not slow down the pace of asset purchases from next month, joining a growing group of policymakers demanding continued stimulus.