Gold pared gains after rising 1% on Wednesday, losing its safe haven appeal on falling oil prices after the precious metal initially garnished support from China’s central bank’s move to stimulate its flagging economy.
Spot gold dropped more than $4 an ounce within one minute shortly after data showed US crude oil stocks rose to a record high and the futures market later fell below the key $50 a barrel mark.
On Wednesday, February 4, Chinese gold bullion fell by 1.1% to CNY 254.10 ($40.62) per gram, making it the day’s biggest mover. At $1,260 per ounce, US gold bullion fell 1.1% on Wednesday. Indian gold bullion closed 1.0% lower at INR 27,475 ($445.87) per 10 grams. Japanese gold bullion prices saw a 0.5% decline to JPY 4,775 ($40.58) per gram.
US silver prices inched up 0.5% to $17.27 per ounce. Indian silver finished the day up 0.2% to INR 38,564 ($625.82) per kilogram. After falling for two days, the price of Japanese silver rose 0.2% to JPY 646.00 ($5.49) per 10 grams. The price of Chinese silver declined 0.1% to CNY 3,595 ($574.67) per kilogram.
The price of Japanese platinum bar is back up, rising by 1.0% on Wednesday to close at JPY 4,666 ($39.66) per gram. The price of US platinum bar increased 0.5% to $1,231 per ounce. Chinese platinum bar prices rose 0.4% to CNY 265.00 ($42.36) per gram.
Chinese palladium bar finished the day down 0.6% to CNY 176.00 ($28.13) per gram. The price of Japanese palladium bar remained steady at JPY 2,944 ($25.02) per gram. At $785.00 per ounce, the price of US palladium bar was essentially unchanged.