Gold settles below $1,533 on commodities sale

Gold slid more than 1 percent on Thursday to settle below $1,533 as the yellow metal was sold along with other commodities.

“With the discussions in the market about lower commodity prices if China’s slowing. And we’ve also had an outright decline in crude oil as well as base metals. I think that has sapped some of the vigor from the bullion market,” said HSBC metals analyst James Steel in New York.

By midday, gold had fallen to a one-week low after a wave of technical selling hit both gold and silver futures.

Spot gold [XAU= 1533.49 0.94 (+0.06%) ] was last bid at around $1,528.54 an ounce, having risen earlier by as much as 0.4 percent to a session high at $1,544.16. It finished Wednesday at $1,540.20.

U.S. gold futures [GCM1 1534.40 2.40 (+0.16%) ] for August settled at $1,532.70, after breaking below support to a low of $1,520.40

Gold earlier rose after weaker-than-expected U.S. data cast doubt about the outlook for growth in the world’s largest economy and hurt the dollar.

Silver suffered even greater losses after a third straight day of disappointing U.S. data.

Because of its industrial component silver futures tumbled to $36.2350 an ounce.

“It’s been silver that has taken the harder fall, because of the greater industrial component there. It has been the weak link in the group,” said Steel.
U.S. factory orders fell 1.2 percent in April, which added to silver’s woes.

Palladium [PACV1 767.00 -3.40 (-0.44%) ] was last quoted slightly higher at around $768.22 an ounce after having fallen by nearly 1 percent on Wednesday when it finished at $765.98. Platinum [PLCV1 1818.60 0.80 (+0.04%) ] last fell to around $1,811.99 from $1,814.25, having shed 0.7 percent on Wednesday. – Reuters

Tags: gold prices