Commodities futures tumbled sharply on Thursday as the dollar rallied in the wake of the U.S. Federal Reserve’s bond-swap program and pessimistic economic data from China further damaged sentiment. Given their industrial nature, precious metals are getting caught up in the downward pull of cyclical commodities. As long as the environment does not brighten, the downtrend is expected to continue.
Gold futures lost $74.20, or 4.1%, to $1,734.10 an ounce on the Comex division of the New York Mercantile Exchange on Thursday, as the dollar rallied in the wake of the Federal Reserve’s bond-swap program. Pessimistic economic data from China further damaged sentiment.
December silver dropped $3.66, or 9.1%, to $36.81 an ounce.
The December copper contract fell 30 cents, or 8%, at $3.46 a pound.
Platinum and palladium prices came under pressure as well, along with silver. October platinum skidded $82.10, or 4.6%, to $1,706.10 an ounce. Palladium for December delivery tumbled $53.20, or 7.5%, to $659.65 an ounce.
