Gold futures fell on Wednesday, settling at their lowest level in more than three weeks as strength in U.S. equities on the back of a climb in private-sector employment in May helped draw investor interest away from the precious metal.
Investors also digested the European Central Bank’s upbeat assessment of eurozone economic health Wednesday while the central bank committed to providing more stimulus if Europe stumbles in its nascent recovery. Expectations that Greece also may be closer to striking an agreement with its international creditors also added to upbeat sentiment for the market, which diminished gold’s haven appeal.
Gold futures for August delivery fell $9.50, or 0.8%, to settle at $1,184.90 an ounce on Comex after tapping a low of $1,179.10. Prices for a most-active contract haven’t settled at a level this low since May 11 and they haven’t suffered a single-session loss this large in over a week.
July silver also lost 31.9 cents, or 1.9%, to $16.48 an ounce.
Gold prices have “fallen before finding strong technical support at the $1,180 level and staging a modest recovery as Greek concerns start to improve,†said Ross Norman, chief executive officer at Sharps Pixley.
