Gold futures dropped sharper in the previous session, with the precious metal recording its lowest close in three weeks, this was the aftermath of the U.S. data that implies a strong rebound in second-quarter that shows an economic growth.
The precious metal rose over the past two sessions, but lost by almost 1.6% by the end of the week as geopolitical tensions in Europe appeared to have somewhat toned down which cut the safe haven demand for commodities like gold.
While silver futures for July was also down by 42 cents an equal to 2.4 percent and was being sold by $16.842 per ounce.
A strong economic growth can result to the Federal Reserve tighten the monetary policy and increase bonds, that puts pressure safe haven commodities.
The Atlanta Fed tracker of GDP points to a strong bounce back for the second quarter after the slowest quarter in three years.
Tyler Richey, co-editor of the Sevens Report stated that “if the economy were to grow at that pace in Q2 that would have hawkish policy implications that are bearish for both Treasury and gold”
Among other precious metals on Comex, July copper futures rose by 2 percent and were being traded at $2.661 per pound, July platinum also lost by 1.7% or $932.20 an ounce. June palladium fell by 1.5 percent and was sold at $814.45 an ounce.
Other U.S. reports that were released early this week include a policy statement from the Feds that could influence growth which would only pressure gold prices more.