Gold hits a four-week low
Bullion prices ended the U.S. day session solidly lower on Thursday, 24 July 2014. Gold fell for a third-straight session on Thursday and hit a four-week low to settle below $1,300 for the first time in over a month as investors continued to focus on equities during this mostly upbeat earnings season.
Gold for August delivery declined $13.90, or 1.1%, to $1,290.80 an ounce.
September silver ended down 58 cents, or 2.8%, to $20.42 an ounce.
Less risk aversion in the market place this week, as evidenced by moves to record or multi-year highs in the U.S. stock indexes, put downside price pressure on the precious metals on Thursday. A firmer U.S. dollar index that hit a four-week high on Thursday, and lower crude oil prices, were also a bearish outside market forces working against the precious metals on this day.
Even with some increased risk appetite in the market place this week, geopolitics is still in the focus of traders and investors.
The much-anticipated HSBC preliminary China Purchasing Managers Index (PMI) rose to 52.0 in July compared to a final reading of 50.7 in June, it was reported Thursday. The July number is a 1.5-year high. A PMI reading above 50.0 suggests expansion. Asian equities were boosted on the upbeat China PMI data. Meantime, the European Union's composite PMI rose to 54.0 in July from 52.8 in June, for the highest reading in over three years. This news helped to boost European stock markets on Thursday. This key economic data coming out of China and the EU suggest the world's major economies are picking up some steam. The PMI data from the EU and China are also bullish underlying factors for the raw commodity sector.
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