Gold prices fell anew today after climbing to $1,745 per ounce in the previous session. Yesterday, the bullion reached its highest pricing level since March 25 as both the U.S. dollar and Treasury yields fell. Today, the increased COVID-19 vaccinations and robust U.S. economic data dented the yellow metal’s appeal as a safe-haven asset.
Spot gold is currently trading at $1,737.82 per ounce as of 0832 GMT.
In the latest positive economic news from the U.S., job openings soared to a two-year peak in February. The Labor Department’s Job Openings and Labor Turnover Survey revealed a 268,000 increase in job openings or a total of 7.37 million for the month. It is 5.1% higher than the pre-pandemic level. There were 233,000 additional job openings in the social assistance and health care sector, 104,000 in the food services and accommodation sector and 56,000 in the entertainment and arts.
There was also a hiring surge in February following the passage of the $1.9 trillion relief package and the accelerated pace of vaccinations. Business hiring increased by 273,00 for a total of 5.7 million. The food services and accommodation sectors led the recruitment growth with a total of 220,000 new hires. The Institute for Supply Management also reported that some services businesses recalled furloughed staff and hired new employees.
Axi’s chief global market strategist Stephen Inness noted that robust U.S. data prompted some investors to book profits which pressured the bullion. However, he suggested that the declining yields would force central banks to remain dovish. That would be positive for gold.
In another sign of recovery, the International Monetary Fund raised its global growth forecast to 6% in 2021 and 4.4% in 2022. The upward revision to the October 2020 forecast reflects the anticipated vaccine-induced recovery, the adaptation of economic activity to existing restrictions, and the rollout of fiscal support in large economies.
In a related development, the holdings of the largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, fell by 0.4% from 1,032.83 tons on Monday to 1,029.04 tons on Tuesday.
Perth Mint reported that its gold sales jumped to a nine-year peak in March. The decline in gold prices lifted the demand for minted products. Sales of gold bars and coins grew by more than 130,000 ounces. It is 39% higher than the same period of last year and 4.8% higher than the previous month.