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Gold prices slumped again in late trading Thursday, extending losses for a fifth straight day, pressured by rising US government bond yields and a stronger dollar ahead of the US jobs report.
The most active gold contract for December delivery on the Comex division of the New York Exchange, lost another 16.90 dollars, or 0.98 percent, to close at 1,709.30 dollars an ounce, after falling to a session low of 1,699.10 dollars per ounce. ounces.
Gold futures slipped 10.1 dollars, or 0.58 percent, to 1,726.20 dollars on Wednesday (31/8/2022), after falling 13.4 dollars, or 0.77 percent, to 1,736.30 dollars on Tuesday. 30/8/2022), and edged down 0.10 US dollars, or 0.01 percent, to 1,749.70 US dollars on Monday (29/8/2022).
U.S. Treasury bond yields rose for a second straight day Thursday, while the dollar index, which measures the greenback against a basket of six other major currencies, hit a fresh 20-year high, at 112, its highest level since June 2002.
"Gold prices have been in free fall ... after another round of strong economic data suggesting the Fed could deliver more rate hikes," said Ed Moya, analyst at online trading platform OANDA.
“Gold is a punching bag as the surge in bond yields has strengthened the dollar. That just became bad news everywhere for gold. No reprieve in sight for gold until the move higher with global bond yields ends.”
Positive economic data released on Thursday (1/9/2022) also pressured gold. The US Department of Labor reported that US initial jobless claims fell by 5,000 to 232,000 in the week ended Aug. 27.
S&P Global's US manufacturing purchasing managers' index (PMI) was revised higher to 51.5 points in August from an initial reading of 51.3.
The Institute for Supply Management (ISM) said its manufacturing index remained at 52.8 percent, the same as July, beating expectations and remaining above the 50 percent threshold indicating expansion.
Markets are now focused on US nonfarm payrolls (NFP) data due for release on Friday. A strong reading is likely to sway the Fed towards more aggressive policy tightening.
"If the nonfarm payrolls report impresses, gold could see selling momentum targeting the $1,650 region," Moya said.
Another precious metal, silver for December delivery fell 21.6 cents, or 1.21 percent, to close at 17.666 dollars an ounce. Platinum for October delivery fell 21.5 dollars, or 2.60 percent, to close at 805.50 dollars an ounce.