Key Takeaways:
Gold spot fell 1.96% to $4,049.48 per ounce on Thursday, approaching the $4,000 psychological threshold after a broad-based metals selloff swept across precious and industrial commodities.
"The simultaneous decline across precious and industrial metals suggests a macro-driven liquidation rather than a gold-specific event," Omar Tariq, commodities analyst at Edgen, said.
COMEX gold futures dropped 2% to $4,052.30. Silver bore the brunt of the selloff, with spot prices sliding 3.6% to $57.60 per ounce, while COMEX silver futures fell 3.99% to $57.895. COMEX copper declined 2.4% to $6.3375 per pound. Platinum lost 2.25% to $1,597.20 and palladium shed 2.86% to $1,258.35.
Gold's 27.6% drawdown from its all-time high of $5,597.23 set Jan. 29 places the metal 28% below that peak, a decline analysts at Investing.com described as confirming a blow-off top. The next catalyst is the July 24 S&P Global US Manufacturing PMI release, with consensus at 54.4.
Precious Metals Lead the Decline
The selloff accelerated after 14:45 Beijing time, with gold dropping steadily through the US session to hit an intraday low of $4,040.27 by 22:08 UTC, according to COMEX data. The metal traded near $4,040 for the remainder of the session. At current levels, gold is up 2.41% from last week but down 0.92% from one month ago, per LBMA pricing.
The Philadelphia Gold and Silver Index fell 2.10%, while the NYSE ARCA Gold Miners Index declined 1.66% to 2,167.94 after opening near 2,205. Newmont Corp., the world's largest gold miner, reported Q2 adjusted earnings of $2.10 per share on revenue of $6.12 billion Thursday — beating profit estimates but missing on the top line, according to Reuters.
A Dollar-Fueled Squeeze Across Commodities
The metals rout coincided with a firmer US dollar, with the DXY rising 0.31% to 101.27, and Brent crude topping $100 per barrel for the first time in months, stoking inflationary fears that complicate central bank rate paths. The 10-year US Treasury yield held at 4.70%.
Gold at $4,049 compares with the 52-week low of $3,268.15 and the all-time high of $5,597.23. The 28% decline from the January peak is the largest drawdown since gold's 2020 correction, according to Investing.com technical analysis, which rates XAU/USD as a "Strong Sell" across daily and weekly timeframes.
This article is for informational purposes only and does not constitute investment advice.
