Gold prices fell sharply on Wednesday as traders chose to take profits after recent rallies.
The yellow metal’s decline was also due to a surge in yields of U.S. 10-year note.
Gold prices moved higher early on in the session and the dollar hit its lowest level in nearly three years on expectations that a Democrat-controlled Senate would pave the way for a larger fiscal stimulus package.
Traders also noted the results of the highly anticipated Georgia runoff elections. Democratic candidate Rev. Raphael Warnock is projected to win his race against Republican Senator Kelly Loeffler, while the race between Jon Ossoff and GOP Senator David Perdue is too close to call although the Democrat is in the lead.
The dollar index, which rose to 89.80 in late morning trades, gave up gains subsequently, and was last seen hovering around 89.40, down slightly from previous close.
Gold futures for February ended down $45.80 or about 2.3% at $1,908.60 an ounce.
Silver futures for March ended lower by $0.598 at $27.042 an ounce, while Copper futures for March settled at $3.6505 per pound, up $0.0110 from previous close.
In economic news, a report released by payroll processor ADP showed an unexpected drop in private sector employment in the U.S. in the month of December.
ADP said private sector employment fell by 123,000 jobs in December after jumping by a downwardly revised 304,000 jobs in November.
The decrease surprised economists, who had expected employment to climb by about 88,000 jobs compared to the addition of 307,000 jobs originally reported for the previous month.
Data from the Commerce Department showed factory orders surged up by 1% in November after jumping by an upwardly revised 1.3% in October. Economists had expected factory orders to climb by 0.7% compared to the 1% increase originally reported for the previous month.
The report said durable goods orders advanced by 1% in November following a 1.8% spike in October.
Source: Read Full Article