Gold prices tumbled on Thursday, threatening to derail a strong winning streak that saw prices of the yellow metal touching a high of $2,058 earlier in the day. The Dollar’s surge in the run-up to the PCE data release weighed on sentiment.<\/p>\n
The Dollar Index, a measure of the Dollar’s strength against a basket of 6 currencies strengthened 0.44 percent to 103.21. <\/p>\n
Data released just a while ago showed year-on-year PCE Price Index falling as expected to 3 percent, from 3.4 percent in the previous month. The core component also declined on expected lines to 3.5 percent, from 3.7 percent in the previous month. <\/p>\n
The month-on-month PCE price index, which was seen dropping to 0.1 percent, from 0.4 percent in the previous month actually recorded a flat reading. The core component of the same reducing as expected to 0.2 percent, from 0.3 percent in the previous period.<\/p>\n
However, bond yields hardened across regions and tenors, dampening the sentiment for the yellow metal. Ten-year sovereign bond yields increased more than 1 percent in the U.S., Germany and France while it hardened more than 3 percent in the U.K. <\/p>\n
In the U.S., two-year treasury bond yields spiked 0.3 percent, five-year treasury bond yields hardened 0.7 percent whereas long dated 30-year bond yields climbed 0.4 percent. <\/p>\n
Gold Futures for December settlement slipped 0.64 percent to trade at $2,034.00. The day’s trading range has been between $2,034 and $2,058. The 52-week trading range was between $1,778.1 and $2,085.40. <\/p>\n
Spot Gold shed 0.49 percent to trade at $2,034.26 per troy ounce. The day’s trading range has been between $2,032.90 and $2,047.28. The 52-week trading range was between $1,765.32 and $2,080.72. <\/p>\n