Gold Futures Drift Lower As Dollar Gains Some Ground
Gold prices are notably lower Thursday morning, as the dollar shows some signs of strengthening after recent weakness.
Sharply lower U.S. futures that indicate a gap down opening for stocks on Wall Street this morning, have raised concerns about margin requirements which in turn could result in unwinding of long positions in the bullion markets.
The Dow futures are down by about 1.1%, while the S&P futures and Nasdaq futures are lower by 1.4% and 2.2%, respectively.
The dollar index is up 0.07% at 93.28. The index rose to 93.59 in the Asian session before paring gains.
Gold futures for December are down $21.00 or 1.1% at $1,949.50 an ounce.
Silver futures are lower by $0.476 or 1.7% at $27.000 an ounce, while Copper futures are down $0.0160 or 0.52% at $3.0450 per pound.
The Bank of England today left interest rates unchanged and maintained its current level of asset purchases.
The nine-member Monetary Policy Committee unanimously voted to hold the interest rate at 0.10%, as widely expected. The bank had altogether reduced the rate by 65 basis points at two unscheduled meetings in March.
The bank retained the size of the asset purchase programme at GBP 745 billion, and said the existing stance on monetary policy remains appropriate and that it does not intend to tighten policy until there is clear evidence that significant progress is being made in achieving the 2% inflation target sustainably.