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Gold and silver futures fell Thursday for a fourth straight session, with prices for both metals settling at their lowest since late March on apparent progress in the U.S. debt ceiling talks and strong economic data that sparked bets of another rate hike by the Federal Reserve.
Gold extended losses after revised estimates showed the U.S. gross domestic product rose at a 1.3% annualized rate last quarter, up from the 1.1% pace estimated last month.
“It looks like Wall Street is pricing in one more Fed rate hike as the consumer is too strong and that won’t quickly change as the labor market is only slowly weakening,” Oanda market analyst Edward Moya said.
Front-month Comex gold (XAUUSD:CUR) for May delivery closed -1% to $1,943.10/oz, its lowest settlement value since March 21, and front-month May silver (XAGUSD:CUR) finished -1.4% to $22.786/oz, the lowest settlement since March 22.
ETFs: (NYSEARCA:GLD), (GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ), (NYSEARCA:SLV), (PSLV), (SIVR), (SIL), (SILJ), (SLVP)
The U.S. dollar and benchmark Treasury yields climbed to their highest levels since mid-March, and “if the dollar continues higher and yields extend their recent advance, [gold’s] 2023 uptrend will likely break,” the Sevens Report said Thursday.
Three weeks ago, the front-month Comex gold contract closed at $2,048/oz, its second highest settlement on record.
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