Gold prices tumbled on Thursday, threatening to derail a strong winning streak that saw prices of the yellow metal touching a high of $2,058 earlier in the day. The Dollar’s surge in the run-up to the PCE data release weighed on sentiment.
The Dollar Index, a measure of the Dollar’s strength against a basket of 6 currencies strengthened 0.44 percent to 103.21.
Data released just a while ago showed year-on-year PCE Price Index falling as expected to 3 percent, from 3.4 percent in the previous month. The core component also declined on expected lines to 3.5 percent, from 3.7 percent in the previous month.
The month-on-month PCE price index, which was seen dropping to 0.1 percent, from 0.4 percent in the previous month actually recorded a flat reading. The core component of the same reducing as expected to 0.2 percent, from 0.3 percent in the previous period.
However, bond yields hardened across regions and tenors, dampening the sentiment for the yellow metal. Ten-year sovereign bond yields increased more than 1 percent in the U.S., Germany and France while it hardened more than 3 percent in the U.K.
In the U.S., two-year treasury bond yields spiked 0.3 percent, five-year treasury bond yields hardened 0.7 percent whereas long dated 30-year bond yields climbed 0.4 percent.
Gold Futures for December settlement slipped 0.64 percent to trade at $2,034.00. The day’s trading range has been between $2,034 and $2,058. The 52-week trading range was between $1,778.1 and $2,085.40.
Spot Gold shed 0.49 percent to trade at $2,034.26 per troy ounce. The day’s trading range has been between $2,032.90 and $2,047.28. The 52-week trading range was between $1,765.32 and $2,080.72.
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