Gold prices plunged on Tuesday, heading for the sixth loss in seven sessions, on the back of rising rates of the benchmark 10-year Treasury notes, the positive data pertaining US retail sales, and the rising US dollar.
In response, gold futures for June delivery headed towards a seven-month low, shedding 1.5% to $1,300 per ounce, while dropping 4.6% in contract.
By 2:49 pm GMT, gold futures dropped 1.84% to $1,293.90 per ounce, while spot gold went up 1.43% to $1,294.72 per ounce, falling below the $1,300 per ounce mark.
Yields on the 10-year Treasury bonds (T-bonds) gained 7 basis points (bps) to 3.06% earlier in the day, reaching their highest level since 2011.
Meanwhile, US retail sales rose in April for the second consecutive month, which reflected a faster growth rate of the country’s economy, the US Census Bureau reported on Tuesday. The ICE US dollar index added 0.6% to 93.25, for the second day in a row.
“The drop below that key level set off a large number of pre-placed sell stop orders in the futures market, to drive prices still lower,” senior analyst at Kitco Metals Jim Wyckoff told MarketWatch, referring to the drop below the benchmark of $1,300 per ounce.
This article provided by NewsEdge.