US PMI data triggers sharp decline in gold prices
Swiss National Bank on Thursday and weaker than expected US data across the board, gold prices climbed to a two-week high level of $2,366 on Thursday as traders expect the US Federal Reserve to follow suit soon, more so as the European Central Bank has already begun slashing its benchmark rate. However, stronger than expected US PMIs released Friday led to a sharp decline in the yellow metal prices.
Spot gold was trading at $2,319, down nearly 1.70% on the day, at the time of the MCX closing on Friday. The metal was down nearly 0.55% on the week. The MCX August contract was at Rs 71,594 (LTP), down 1.37%.
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Offering CollegeCourseWebsiteIIM LucknowChief Operations Officer ProgrammeVisitIIM LucknowChief Executive Officer ProgrammeVisitIndian School of BusinessISB Chief Digital OfficerVisitAs the domestic currency fell to a record low on the strength in the US Dollar Index, it helped the metal cushion its losses to an extent.
Data and event round-up
On Thursday, three major central banks delivered their monetary policies. The Swiss National Bank lowered borrowing costs by 25 bps to 1.25% as the Bank is getting concerned with a strong Franc amid low inflation and low inflation forecast. However, the Bank of England and the People’s Bank of China kept their respective benchmark rates unchanged.
US data released in the week were mixed. US initial jobless claims, continuing claims, housing starts (May), building permits, existing home sales (May) and Philadelphia
