Gold prices dropped from Wednesday's levels, after briefly rising to the green zone as data showed a surprise contraction in the U.S. economy in the first quarter of 2022.
The annualized 1.4 percent contraction compared to an expectation of 1.1 percent expansion in the economy. The fourth quarter of 2021 had recorded a growth of 6.9 percent.
The Dollar Index which had earlier touched a high of 103.93 dropped sharply to 103.53 as news of the contraction emerged. DXY is currently at 103.61.
Gold Futures for June settlement are currently trading at $1885.40, down 0.17 percent from the previous close of $1888.70. Prices oscillated between $1870 and $1896 per troy ounce. The recent hawkishness in the Fed's monetary policy stance had lifted the Dollar as well as bond yields, putting immense pressure on the dollar denominated prices of the non-interest-bearing yellow metal.
