Earlier this week, it was boosted after weak US data eased concerns that the central bank may be tightening its monetary policy too fast.
-- Gold slid toward $US1700 an ounce as traders assess whether the US central bank may maintain its hawkish stance after a slew of mixed US data.
The precious metal fell as much as 1.5 per cent Wednesday after fresh data showed the US economy remains resilient. That may give the Federal Reserve more room to aggressively raise interest rates to fight inflation. The dollar and Treasury yields extended gains after the print, pressuring bullion because it doesn’t pay interest.The precious metal has been caught in changing views on central banks’ stance on monetary policy recently.
While gold remained above $US1700, TD Securities commodity strategists led by Bart Melek still see it reverting to weakness as “a hawkish Fed prevails.” Data on Wednesday showed growth at service providers remained firm in September, reflecting solid business activity and orders, while a measure of prices fell to the lowest since the start of 2021. The ADP Research Institute data showed US firms hiring at a solid clip, an indication the jobs market remains strong.Spot gold fell 0.6 per cent to $1,715.23 an ounce as of 2:26 p.m. in New York. Bullion for December delivery slipped 0.6 per cent to settle at $1,720.80 on the Comex.
The Bloomberg Dollar Spot Index gained as much as 1.1 per cent following Tuesday’s 1 per cent slide. Silver, platinum and palladium all fell.
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