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Gold futures fell by the most in nearly two months Thursday, also snapping a five-session winning streak, after the Federal Reserve indicated it may not be done yet raising rates and that it is unlikely to cut rates in 2024 as much as the market had hoped.
The dollar rose past a six-month peak, while benchmark 10-year Treasuries skied 13 bps to a 16-year high 4.48%, weighing on dollar-priced bullion that bears no interest.
Front-month Comex gold (XAUUSD:CUR) for September delivery closed -1.3% to settle at $1,919.20/oz, marking the biggest one-day dollar and percentage decline since August 1, while September silver (XAGUSD:CUR) ended -0.5% to $23.444/oz.
ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ), (NYSEARCA:SLV), (PSLV), (SIVR), (SIL), (SILJ), (SLVP)
Precious metals finished broadly lower in Thursday’s trading, including (IAG) -5.3%, (PAAS) -4.5%, (KGC) -4.4%, (GFI) -4.1%, (HMY) -3.7%, (CDE) -3.6%, (EGO) -3.4%, (EXK) -3.4%, (AG) -3.2%, (MAG) -3.1%, (WPM) -3%, (NGD) -2.9%, (SSRM) -2.9%, (SVM) -2.8%, (GOLD) -2.4%, (FNV) -2.3%, (AEM) -2.3%, (HL) -2.2%.
The downward momentum in gold from the higher-for-longer narrative has further triggered some liquidation of long positions, TD Securities commodities strategist Ryan McKay said, adding that further pressure could come from systematic funds flipping to a net short position in the next few days.