Gold takes a beating, post biggest loss of 2017
Gold took a beating today, posting a loss of $17.10, while ending the day at $1,232.90 according to this Market Watch report.
Gold futures on Thursday suffered their biggest one-day loss of the year, finishing at a more than two-week low, after the U.S. dollar touched its highest levels since January on the back of increased suggestions from Federal Reserve officials fora near-term interest-rate hike.
Gold for April delivery GCJ7, -1.15% fell $17.10, or 1.4%, to settle at $1,232.90 an ounce. Prices settled at their lowest since Valentine’s Day and saw their largest dollar and percentage decline since mid-December, according to FactSet data.
Despite the hawkish backdrop, “gold finished with only a modest loss on Wednesday—a rather impressive performance considering that the U.S. equity markets also surged to new highs,” said Edward Meir, an independent commodity consultant to INTL FCStone, in a note.
“If we look at gold’s performance over the course of the last five trading sessions, prices have hardly dropped at all, telling us that funds remain committed to the precious metal in light of what they view to be an uncertain U.S. legislative outlook,” he said.
Some investors have also attributed the surge in demand for assets considered risky, like stocks, to an improved outlook for the health of the global economy and President Donald Trump’s well-received address in front a joint session of Congress late Tuesday. Those factors tend to make gold, which flourishes when investors are fearful, less attractive.