Gold Falls on Stronger U.S. Treasury Yields


Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as the U.S. Treasury bond yields strengthened.

The most active gold contract for August delivery fell 11.70 U.S. dollars, or 0.61 percent, to close at 1,915.40 dollars per ounce.

In remarks to the annual meeting of the Central Bank Research Association in New York Thursday, Dallas Federal Reserve President Lorie Logan said she remains concerned about whether inflation will return to the Fed’s 2-percent target in a sustainable and timely way.

“The continuing outlook for above-target inflation and stronger-than-expected labor market calls for more-restrictive monetary policy,” Logan said.

Market expectation for rate hikes later this year pushed gold to settle at the lowest level Thursday since March 14.

Economic data released Thursday are mixed. The U.S. Labor Department reported that U.S. applications for jobless claims rose by 12,000 to 248,000 for the week ending July 1, up from 236,000 in the previous week.

The Automated Data Processing Inc. reported that U.S. private sector jobs soared by 497,000 in June, significantly above expectations of 250,000 and a large jump from May’s 278,000.

The U.S. Labor Department reported that there were 9.8 million job openings in May, down from 10.3 million in April.

The seasonally adjusted final S&P Global U.S. services purchasing managers’ index (PMI) fell to 54.4 in June, down from 54.9 in May.

Silver for September delivery fell 51.20 cents, or 2.19 percent, to close at 22.89 dollars per ounce. Platinum for October delivery fell 15.30 dollars, or 1.65 percent, to close at 909.70 dollars per ounce.