Gold went through a five-week streak decline on Thursday. With the prospects of increasing U.S. interest rates next month, market analysts are predicting more losses for the following months.
Gold futures in the U.S. slid by $6.20 to end at $1,203.20 an ounce. Gold futures swung to its lowest level ever since February 1 by settling at $1,202.90 an ounce; gold was sold as low as $1,199.70 on the prior day.
Spot gold edged down by 0.32 percent at $1,203.58 an ounce. However, it swung $1,202.70 earlier in the session, considered the lowest ever since February 1.
Firm U.S. comments and fiscal data by the Federal Reserve officials have shored up expectations of a rapid increase of U.S. interest rates in March.
This on-going expectation of rising U.S interest rates could possibly compel against the price of gold because they raise the opportunity cost of grasping non-yielding bullion, and at the same time strengthening the dollar, considering that it is priced.
According to Bernard Dahdah, a metal’s analysts at Natixis, it is no surprise to witness gold to fall apart less than $1,200 in the next few days. He also stated that as much as the continuing oil price decline is visible to everyone, further news are being released regarding what the market is already aware of.
The U.S. private sector paraded their biggest rise for more than a year by showing job growth in numbers, based on Wednesday’s data.
When Janet Yellen, a Federal Reserve chair, said the central bank was waiting to drive rates, investors are currently anticipating a February non-farm payrolls data on Friday, which will serve as a barometer of the U.S. economy; providing the inflation and jobs statistics holds up.
Meanwhile in silver, this precious metal plummeted by 1.59 percent to $16.96. Palladium edged down 2.97 percent to $746.15 while platinum plunges by 0.85 percent to $936.50; their weakest since the beginning of January.