Gold slid lower on Thursday, November 24, as the dollar traded within reach of an almost 14-year high hit on positive U.S. economic data,Reuters reports.
Spot gold slumped by 0.2 percent at $1,185.45 an ounce by 1300 GMT. It dropped 2 percent in the previous session and touched its lowest since Feb. 8 at $1,180.99 overnight. U.S. gold futures eased by 0.1 percent to $1,188.10.
With U.S. markets closed for the Thanksgiving holiday, trade is expected to thin down later in the day. Spot prices have dropped nearly 12 percent from a high of $1,337.40 on Nov. 9, when Donald Trump was announced U.S. president-elect.
“The expectation that Trump’s election would lead to a longer risk-off period in financial markets was soon overtaken by the perception that he would be able to boost growth and that inflation would be accompanied by rising interest rates, which raised a bearish scenario for gold,” said Julius Baer analyst Carsten Menke.
“At least in the short term there is some consolidation due in the dollar and U.S. Treasury yields, and this is something that should provide gold (with) some support,” he added. “Still, the big risk would be continued selling of investor physical holdings.”
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 1.47 percent from the previous day to 891.57 tonnes on Wednesday. Holdings have declined by more than 5 percent this month.
Spot silver dropped 0.3 percent to $16.30 an ounce after falling to its lowest since June in the previous session. Platinum was down 1.5 percent at $913.80, having earlier hit a 9-1/2 month low, while palladium slipped by 0.2 percent to $731.50.
