The price of gold declined on Thursday, snapping a three-day winning streak after central banks around the world provided a muddied outlook on monetary policy. Gold Slides; Silver Follows The yellow metal fell by as much as 1.3% on Thursday, as investors reacted to central-bank…
The price of gold declined on Thursday, snapping a three-day winning streak after central banks around the world provided a muddied outlook on monetary policy.
The yellow metal fell by as much as 1.3% on Thursday, as investors reacted to central-bank statements in Washington, Tokyo and London. Futures for December gold delivery were last down $5.20, or 0.4%, at $1,510.80 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prior to Thursday’s drop, gold futures had rallied for three straight sessions, approaching highs near $1,520 an ounce.
Silver futures have traded in a similar fashion as gold bullion. The grey metal plunged by as much as 1.7% in aftermarket trading. It was last up 6 cents, or 0.3%, at $17.98 a troy ounce.
The gold-silver ratio used by investors to determine when to buy and sell precious metals held steady around 84.00 ounces on Thursday.
Declines in precious metals came even as the U.S. dollar fell against a basket of competitors. The DXY dollar index, which tracks the greenback’s performance against six currencies, fell 0.3% to 98.29.
Gold’s rally came under attack after the Federal Reserve lowered interest rates on Wednesday but signaled that its officials were divided on the future path of monetary policy. The U.S. central bank’s quarter-point rate cut had three dissenters, including two who were against lowering the federal funds rate.
The Bank of Japan (BOJ) also stood pat on its monetary policy program Thursday, voting to keep short-term interest rates at -0.1% and the 10-year government bond yield around zero. BOJ officials did signal that more stimulus measures could be coming as soon as October.
The Bank of England (BOE) held its benchmark interest rate at 0.75% on Thursday and warned of varied impacts of Brexit outcomes on the nation’s economy. The Bank’s Monetary Policy Committee (MPC) forecast lower interest rates for longer as the country grapples with Brexit uncertainty.
This article was edited by Sam Bourgi.
Last modified: January 10, 2020 2:55 PM UTC