Global prices for gold abruptly dipped to their lowest in more than four months as commodity markets absorbed a strong US jobs report, boosting expectations of monetary tightening by the Fed.
The precious metal was trading $1,741 per ounce, marking a daily decline of 1.26% as of 13:28 GMT. US gold futures shed 1.11% to $1,743.50. Meanwhile, silver slid 7.5% to its lowest price in more than eight months at $22.50 per ounce.
Sentiment in bullion remains bearish and the market may have overreacted to the jobs data, according to Carlo Alberto De Casa, market analyst at Kinesis, as quoted by Reuters.
“Even if the Federal Reserve is reducing liquidity, it is not going to happen today or tomorrow; it will take time,” the expert said, adding that some investors were still looking for bargains.
The prices of other metals are also on the decline, with platinum dropping 0.8% to $971.80 per ounce, having earlier hit its lowest since November 2020, while palladium was down 0.4% to $2,616.34.
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