JABAR EKSPRES – Gold futures prices fell again in late trading Friday (5/26) morning, extending losses for the fourth day in a row, pressured by a strengthening dollar against major currencies to touch a two-month high, as data showed a resilient US economy.
The most active gold contract for June delivery on the Comex division of the New York Exchange, slumped 20.90 US dollars or 1.06 percent to close at 1,943.70 US dollars per ounce, after touching a session high of 1,965.40 US dollars and a low of 1,939.20 US dollars.
Gold futures slipped US$9.90 or 0.50 percent to US$1,964.60, after falling US$2.70 or 0.14 percent to US$1,974.50 on Tuesday, and trimming US$4.40 or 0.22 percent to US$1,977.20 on Monday (5/22).
The dollar strengthened against a basket of other major currencies on Thursday (5/25) amid ongoing concerns over a possible US debt default and upbeat macroeconomic and labor market data.
Read more: APVI: E-Cigarettes have The Potential to Become a New Flagship Industry
The dollar index rose 0.433 percent to 104.280 after reaching 104.31, the highest since March 17. The four-day winning streak would mark the longest since late February.
Meanwhile, Fitch Ratings Inc said Wednesday that it is considering a downgrade of the United States’ credit rating. The news helped boost the value of the US dollar.
A shift in hawkish tone by some US Federal Reserve officials also affected the market. Minutes from the Fed’s May policy meeting showed that “some” officials said they thought it was “likely” that there would be additional policy tightening.
Economic data released on Thursday (5/25) further reduced gold’s appeal. The US Commerce Department reported that US gross domestic product, the broadest measure of economic output, increased at an annualized rate of 1.3 percent in the first quarter, up from the preliminary estimate of 1.1 percent reported last month.
The US Labor Department reported that the seasonally adjusted number of US initial jobless claims rose 4,000 to 229,000 in the week ended May 20.
