Futures gold prices for June delivery in New York are flat today. At 8:16 pm Melbourne time, the gold contract for June delivery was in the position of U.S. $ 1636.40 per troy ounce. Throughout this week, gold prices for this contract was down by 1.7%.
Meanwhile, the contract price of gold for fast delivery are also not much listed changes in the level of U.S. $ 1636.07 per troy ounce. Thus, throughout the week, gold prices for this contract was down 1.6%.
While the contract price of silver for July delivery rose 0.3% to U.S. $ 30.09 per troy ounce and is toward a weekly decline of 4.2% this week.
Yesterday, gold prices recorded the biggest drop in three weeks after the European Central Bank refrained from adding more stimulus into the financial system at a meeting in Barcelona.
The factors causing the price of gold fell
Gold is now seen as a physical commodity rather than a safe haven asset or hedging tools. The decline in gold prices occurred after unemployment data (Jobless Claims) in some countries jumped sharply. This is fueling the fears that the global economy will slow. Mere information, the unemployment rate in Europe surged to its highest level in 15 years.
In addition, gold ownership in exchange-traded products fell to its lowest level in three months. The data compiled by Bloomberg show, yesterday (May 2), gold ownership in ETP fell to 2381.045 per metric ton. This is the lowest level since February 1.
Another factor in the decline in gold prices is the strengthening U.S. dollar against the euro.
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