20 May 2016

Gold added to its previous day decline, sinking to a three-week low, although the overall net loss was not as sharp as what we saw on Wednesday. Nevertheless, the reverberations from the rather hawkish Federal Reserve minutes continue to weaken prices, although a sharp sell-off in US stocks managed to limit the extent of the declines. Downward pressure also materialized in the wake of US data showing that American initial claims fell in the latest week, an indication that growth in the labor markets remains intact. We saw parallel weakness in the rest of the precious group as well as well as in base metals after copper hit a three-month low. Grains also sold off sharply and oil prices also lost ground.

News article attributed to www.bulliondesk.com