Apr. 23, 2014 (Allthingsforex.com) – Gold futures went down last week as confidence in the US market halted the demand for the precious yellow metal.
Gold prices fell 1.9% last week, as jobs went up and optimism for the economy rose from a two-month low. “These positive economic reports are pushing gold lower,’’ said Infinity Trading Corp. President Fain Shaffer. ‘‘There’s not really a compelling story to buy gold now, "other than the situation in Crimea.’’
Gold futures for June saw prices fall to 0.6% and settled at $1,281.10 per ounce on Tuesday at designated contract market COMEX. Gold prices shot up to 70% when the Federal Reserve’s stimulus package was first introduced in 2008. But when the Fed reduced its aggressive buying of bonds last month to $55 billion, gold’s prices started to decline.
In 2013, gold’s price fell by 28% as US equities recovered greatly. It was the biggest decline the precious commodity experienced since 1981. Last month, however, gold prices jumped by around 7% due to the political turmoil that Ukraine is experiencing from Russia.
Recent data shows that the US is on its way to economic progress. An increase in manufacturing products and a significant improvement in the country’s job market added to the country’s index of indicators.
On Tuesday, gold-backed ETFs fell to 1,735.2 tons, the lowest since 2009, according to an article by Bloomberg. Investments in the SPDR Gold Trust on Wednesday fell sharply to 798.43 tons, the lowest decline it has experienced in 4 months. BullionVault has a wealth of gold advice concerning exchange traded funds and investors may view the Gold ETF page for more information.
“Gold remains under pressure as long as economic data out of the U.S. is positive,” said Everbright Futures Co., macroeconomic strategist Sun Yonggang. “We see some support from the little pickup in physical activity when prices fall below $1,300.”
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