IBT: Gold gives in after spat of negative US economic data, ahead of non-farm payroll data release
Gold price caves in to $1,221 oz - a 2 percent decline after holding steady at $1,240 oz for the entire day after some negative economic data.
Despite some positive economic signals from European market hours where successful auction of Spanish bond and less than expected demand for new fund from ECB by European banks at 6-day refi auction infused some confidence in the market.
But appreciating Japanese Yen was not confirming this calm and a glut in negative economic data confirmed the same.
Essentially, gold couldn't sustain the pressure of higher than expected jobless initial claims applications and lower than expected manufacturing data and 30 percent drop in pending home sales data pushed the accelerator.
It is a reversal of expectations that gold would surpass $1,300 oz in the second half of 2010, especially when markets are keen watching Friday's non-farm payroll data for June.
