Investing.com – Gold futures were down for a second day on Thursday, dropping below the psychologically important level of USD1,500 an ounce, while silver prices extended losses from the previous session as a sharp sell-off in commodities and a broadly stronger U.S. dollar weighed.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,494.45 a troy ounce during late Asian trade, slumping 0.49%.
It earlier fell as much as 0.75% to USD1,490.45 a troy ounce, the lowest price since May 9.
Meanwhile, silver for July delivery sank 2.95% to trade at USD34.23 a troy ounce, after plunging by as much as 4.7% to hit a four-day low of USD33.54.
The commodities complex plunged on Wednesday, as weaker-than-expected industrial output data from China sparked concerns that Chinese economic growth was slowing, triggering fears over a slowdown in demand for commodities.
Renewed strength in the U.S. dollar also weighed on precious metal prices, as the dollar index held steady near a three-week high, as fears over Greece's debt crisis weighed on the euro.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Meanwhile, global financial service provider UBS said in a report late Wednesday that it expected a “reversal of 20% or more” in silver prices. “A return to levels in the low-USD30’s, would not surprise us at all.”
The investment bank added that it remained “significantly more friendly to gold than to silver.”
Silver prices have lost approximately 30% since hitting a 31-year high of USD49.81 on April 25.
Elsewhere, copper for July delivery slipped 0.44% to trade at USD43.891 a pound during late Asian trade.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,494.45 a troy ounce during late Asian trade, slumping 0.49%.
It earlier fell as much as 0.75% to USD1,490.45 a troy ounce, the lowest price since May 9.
Meanwhile, silver for July delivery sank 2.95% to trade at USD34.23 a troy ounce, after plunging by as much as 4.7% to hit a four-day low of USD33.54.
The commodities complex plunged on Wednesday, as weaker-than-expected industrial output data from China sparked concerns that Chinese economic growth was slowing, triggering fears over a slowdown in demand for commodities.
Renewed strength in the U.S. dollar also weighed on precious metal prices, as the dollar index held steady near a three-week high, as fears over Greece's debt crisis weighed on the euro.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Meanwhile, global financial service provider UBS said in a report late Wednesday that it expected a “reversal of 20% or more” in silver prices. “A return to levels in the low-USD30’s, would not surprise us at all.”
The investment bank added that it remained “significantly more friendly to gold than to silver.”
Silver prices have lost approximately 30% since hitting a 31-year high of USD49.81 on April 25.
Elsewhere, copper for July delivery slipped 0.44% to trade at USD43.891 a pound during late Asian trade.