Gold futures snap three-session winning streak
Bullion metals ended the U.S. day session moderately lower on Thursday, 16 October 2014. However, the keen trader and investor anxiety in the world market place did limit selling interest in safe-haven gold. Gold futures snapped a three-session winning streak on Thursday as safe-haven demand eased on the back of a recovery in the U.S. stock market.
Gold for December delivery fell $3.60, or 0.3%, to settle $1,241.20 an ounce.
December silver lost 3 cents to $17.44 an ounce.
Gold hit a five-week high on Wednesday as investors sought havens in a rout that slammed U.S. equities. The dollar sold off sharply, which also might have provided some support for precious metals. The two key outside markets saw the U.S. dollar index weaker on Thursday. However, there will likely continue to be safe-haven demand for the greenback if this market anxiety continues. A weaker currency makes dollar-priced commodities less expensive to users of other currencies.
There continued to be risk aversion in the world market place on Thursday. Also, the U.S. Treasury markets were lower after posting solid gains early on. That suggests some easing of trader and investor anxiety and can also be attributed to the price weakness in gold on Thursday.
However, European stocks plunged Thursday amid renewed worries about the periphery European Union nations that are once again showing financial strains. Bond yields in Spain, Italy and Greece are on the rise again. Indeed, fresh economic data from the EU Thursday showed the bloc's members that use the Euro currency saw its annual consumer inflation rate fall to a five-year low, at up just 0.3% in September.
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