Gold prices struggled on Wednesday, following an upbeat batch of U.S. economic data as the commodity was headed for yet another losing session, after the worst day in roughly three weeks.
was modestly lower at $1,782.50, after slumping $22.50, or 1.2%, to settle at $1,783.80 an ounce on Tuesday. That bruising session marked the lowest finish for a most-active contract since Nov. 3., and followed a 2.4% drop on Monday, the sharpest percentage fall since Aug. 6, FactSet data show.
Another loss for Wednesday will mark a five-day slide for gold, something the metal hasn’t seen since early March. Gold dropped through the psychologically important level of $1,800 gain as Treasury yields climbed in a holiday-shortened week. Bond yields
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U.S. markets will close for Thanksgiving Day on Thursday, with a shorter session on Friday.
Economic data showed U.S. durable-goods orders dipping in October, weekly jobless claims hitting the lowest level since 1969, international trade in goods sinking 14.6% in October, and gross domestic product rising at a slightly revised annualized 2.1% in the third quarter.
Investors have been factoring in a more hawkish approach for 2022 by newly renominated Federal Reserve Chairman Jerome Powell, and the latest batch of data showing continued economic strength.
“The bulls have faded this week and need to step up and show power very soon to avoid serious near-term technical damage,” said Jim Wyckoff, senior analyst at Kitco.com, in a note to clients.
And investors are unlikely to re-enter gold at long positions around the holiday, said Jeffrey Halley, senior market analyst at OANDA, in a note to clients.
“Momentum will be muted and that means that the $1835.00 to $1850.00 region will cap gains this week, although I will be surprised if we even get as far as $1810.00 an ounce. If U.S. yields remain firm this week, gold will be vulnerable to further losses,” said Halley.
added 4 cents, or 0.8%, to settle at $4.4605 a pound.