Gold and Silver Futures Decline

Gold and silver futures plunged to a three-week slump with the growth of US payrolls. This development adversely affected the appeal of precious metals.

Gold dropped 5.6 percent from a five-month peak last January as the US economy gained footing in futures and traded below the moving average of 200 days. Global equities recovered further dampening the metal’s attraction as alternative form of investment.

The economic strength of the economy has hurt gold.

Gold futures for settlement in April abated 2.2 percent to remain at $1,234.60 per ounce at the New York COMEX. The price reached $1,228.20 which is the lowest for the most active contract since January 15. Gold dropped 3.5 percent during the week.

Last month, gold gained eight percent after central banks in Europe and Asia came up with stimulus measures while speculation spread that the US Central Bank will have to wait for a while before raising interest rates due to slack foreign economies.

Gold went up 70 percent from December of 2008 to June of 2011 after central banks bolstered money supply on an unparalleled degree and prompted concerns that inflation will hasten.

According to the China Gold Association, the country’s demand plummeted to 886.1 metric tons in 2014 from a high 1,176.4 tons during the previous year.

Silver futures (March settlement) plunged 2.9 percent to $16.694 at the COMEX.

The price reached $16.545 which is the lowest since January 12.