Gold futures quotes declined during US trading on Monday.
On COMEX, a division of the New York Mercantile Exchange, gold futures for August delivery are trading at $1.00 per troy ounce, down 2.47% at the time of writing this comment.
The minimum of the session was the mark of $ per troy ounce. At the time of writing, gold found support at $1.825.15 and resistance at $1.882.30.
Futures for the USD index, which shows the ratio of the US dollar to a basket of six major currencies, rose by 0.82% and is trading at $ 104.86.
As for other commodities traded on COMEX, silver futures for July delivery fell by 3.09%, reaching $21.25 per troy ounce, and copper futures for July delivery fell by 1.98%, reaching $4.21 per pound.
We still expect a decline in gold and silver prices, as they failed to demonstrate a significant recovery when the impact of vaccine news faded, despite the rapid increase in the number of new cases in the United States,” analysts at Zaner Metals note. According to analysts, the decline in gold prices may indicate a renewed demand for high-quality securities.
The strengthening of the dollar against other major currencies also contributes to the decline in gold quotes. The ICE dollar index, which tracks the value of the US currency against a basket of six other currencies, recently rose 0.1%. Meanwhile, the index is likely to end the week with a decrease of 0.4%.
As for gold prices, we expect them to decline further. This situation is observed at a time when the dollar index has already weakened significantly. This suggests that investors have started selling safe haven assets and are now ready to buy riskier assets,” said Naim Aslam, chief market analyst at AvaTrade.
December gold futures on COMEX fell in price by $ 12.40, or 0.7%, to $ 1,861.50 per ounce after falling by 0.6% at the end of Wednesday’s session. Thursday’s closing level is the lowest since November 9, according to FactSet.
December silver contracts fell 40 cents, or 1.6%, to $24.048 per ounce after falling 0.8% on Wednesday.
The decline in quotations of precious metals accelerated despite the fact that the Philadelphia Fed reported a decrease in the business activity index in November by 6 points, to 26.3. In addition, the number of initial applications for unemployment benefits increased for the first time in five weeks, according to data published on Wednesday.
The number of initial applications for unemployment benefits in the week of November 8-14 increased by 31,000, adjusted for seasonal fluctuations, and amounted to 742,000, the US Department of Labor reported. The economists surveyed by MarketWatch assumed that the number of applications in the reporting week would be 710,000.