• Thursday, November 30, 2023
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Gold falls for fourth day to $1,592.44 an ounce


Gold fell for a fourth day on Wednesday, tracking losses in the euro and European shares after soft demand at an Italian debt auction added to worries over the debt crisis in Cyprus. Reuters report yesterday showed that spot gold was down 0.4 percent to $1,592.44 an ounce by 1046 GMT, on course for a fourth session of losses, matching a similar run in late February and early March. It hit its weakest since March 15 at $1,589.49 on Monday.

Prices were however still on course for their first monthly gain – up around 0.9 percent so far – after posting declines in every month since October. U.S. gold futures for April delivery dropped 0.3 percent to $1,591.60.

Trading was expected to thin ahead of the Easter holiday break, analysts said, adding that liquidity should return next week, when an European Central Bank (ECB) policy meeting and U.S. non-farm payrolls will be the main economic events.

“The focus will remain on Cyprus and its developments in coming sessions,” Danske Bank analyst Christin Tuxen said “The U.S. data was fairly strong yesterday and there is a picture now that the United States is leading the global economic recovery, alongside China of course, which is comforting for investors who would otherwise be looking for the safe havens like gold.”

Orders for long-lasting U.S.-made goods surged last month and home prices posted their biggest year-on-year gain in six-and-a-half years in January, the latest signs the U.S. economy regained momentum early in the first quarter. Upbeat U.S. data in recent months has boosted confidence in the recovery of the world’s top economy, driving investors to high-yielding assets such as equities, while minimal inflationary pressure has muted gold’s appeal as a hedge against rising prices.