Gold prices fall but remain above $5k/oz, silver retreats
Focus this week is squarely on key U.S. economic readings for more cues on the world’s largest economy, as well as the path of interest rates.
SEATTLE (Scrap Monster): Gold prices fell in early Asian trade on Tuesday, retreating from strong gains in the prior session as metal markets remained on edge before a string of key U.S. economic readings due this week.
Silver and platinum prices also retreated, having taken limited support from an overnight drop in the dollar. The greenback was seen recovering slightly in Asian trade.
Spot gold fell 0.8% to $5,016.28 an ounce, while gold futures for April fell 0.8% to $5,041.60/oz by 19:55 ET (00:55 GMT).
Spot silver fell 2.4% to $81.2945/oz, while spot platinum fell 2% to $2,081.71/oz.
Precious metals were nursing sharp swings over the past week as a mix of profit-taking and overheated positioning saw prices slide from record highs. Uncertainty over U.S. monetary policy, ahead of a potential leadership change at the Federal Reserve, also sparked heightened volatility.
Focus this week is squarely on key U.S. economic readings for more cues on the world’s largest economy, as well as the path of interest rates.
Nonfarm payrolls data for January is due on Wednesday, while consumer price index inflation data is due on Friday. Both prints are expected to factor into the Fed’s plans for interest rates, given that inflation and labor market strength are the banks two biggest considerations.
Markets continued to gauge the outlook for monetary policy under Kevin Warsh, U.S. President Donald Trump’s nominee for the next chairman of the Fed after Jerome Powell’s term ends in May.
Warsh was viewed as a less dovish pick, with his nomination sparking deep losses in metal markets– losses they are yet to recover from. Gold plummeted from a near $5,600/oz record high, while silver slumped from levels of more than $120/oz.
Courtesy: www.investing.com