The price of gold futures on the COMEX Division of the New York Mercantile Exchange decreased on Thursday (14/3) local time or Friday (15/3) morning. The most active gold contract for April delivery fell US$13.30 or 0.68% to close at US$2,167.50 per ounce. This decline was due to the increase in the United States (US) dollar index and bond (Treasury) yields.
The US Department of Labor reported on Thursday that the consumer price index (CPI), which tracks inflation before it reaches consumers, rose 0.6% in February and increased from a 0.30% increase in January. The index rose 1.6% year on year in February. That was the highest increase since last September.
A higher-than-expected rise in US inflation pushed up the US dollar index and bond yields, which is bearish for gold.
Other economic data released on Thursday (14/3) was mixed. The US Department of Labor reported that the number of Americans applying for unemployment benefits fell by 1,000 to 209 thousand people.
Later, the US Department of Commerce reported that US retail sales rose seasonally adjusted by 0.6% in February compared with the previous month. Even though it rose, it was still below economists’ estimates of 0.8%.
Apart from that, the Federal Reserve (The Fed) will also hold a Fed monetary policy meeting on March 19 and 20. All of these indicators will greatly influence the price of gold futures in the future. (Ant/Z-11)
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