Gold closed with a strong growth yesterday, winning back all the losses it incurred earlier. But in terms of the whole price movement, the yellow metal underwent the largest decline it had since the fourth quarter of 2016.
On Wednesday, April futures for gold (in NYMEX) increased by 1.8%, hitting $ 1,713.90 per ounce. A day earlier, it lost almost 1.7%, falling to the low of March 8.
June futures also jumped by 1.8%, trading at $ 1,716.60 an ounce.
But all in all, gold contracts fell by 0.8% at the end of March, and by 9.5% at the end of the quarter.
With regards to other metals, May futures for silver rose 1.6%, closing at $ 24.53 an ounce. May futures for copper also increased, but only by 0.4%. It traded nearly $ 4 a pound. Meanwhile, July futures for platinum jumped by 2.7%, thereby reaching a price of $ 1,191.50 an ounce. June futures for palladium also increased by 2%, as a result of which the metal hit $ 2,619.90 an ounce.
Obviously, these gains were set off by the strong statistics from the United States. Aside from that, investors are anticipating US President Joe Biden's new plan for the US economy, which is designed to close inequalities and serious gaps between the rich and the poor.
Going back to US statistics, jobs in the private sector rose by 517,000 this March, according to data released by the ADP. This suggests that the $ 1.9 trillion bailout bill, as well as the large-scale vaccination program, successfully fueled economic recovery in the country.
As a result, as mentioned earlier, gold was able to trade upwards, in particular, by 1.8%, thereby returning to a price above $ 1,700 per troy ounce.
June futures, for instance, increased by 0.01%, hitting $ 1,715.85 per troy ounce.
But the earlier increase in Treasury yields and the US dollar already reduced the attractiveness of the yellow metal. It made gold less accessible to holders of other currencies.