Gold futures ended at their lowest in a week on Wednesday, ending a solid rise before and after Easter that had driven prices to a more than seven-year high on Tuesday.
The sharp pullback in prices came as the US dollar rose, which in turn saw the Aussie dollar back under 63 US cents at one stage before steading around 63.25 just after 6 am, Sydney time.
The stronger dollar also saw silver, copper, oil and iron ore all weaker.
Investors had to digest a spate of very weak US economic reports, including the New York Fed’s Empire State business conditions index which plummeted to -78.2 in April, the lowest reading on record.
Retail sales fell a record 8.7% slump in sales in March and economists say the fall in April will be even steeper. Industrial production slumped 5.4% in the biggest monthly fall since 1946!.
US electronics retailer, Best Buy announced the laying off of 51,000 hourly workers and Harley Davidson, the bike maker, also laid off staff.
And tonight there will be more bad news with millions of more people to be added to the record number of first-time unemployment benefit applicants.
All this saw Comex gold for June delivery fall $US28.70, or 1.6%, to settle at $US1,740.20 an ounce. Prices had settled at the highest since October 2012 on Tuesday.
Elsewhere in Comex, the May contract for silver fell 62.5 cents, or 3.9%, to $US15.505 an ounce, giving up a chunk of its 3.8% advance from Tuesday.
May copper shed 1.4% to $US2.296 a pound.
Global iron ore prices eased just 16 cents on Wednesday to $US86.86 a tonne for 62% Fe fines delivered to northern China.
