The U.S. Comex gold futures fell 0.48% last week and dropped a further 0.38% this week to $1,153.50 on Tuesday. The implied volatility of the gold futures has been falling from 21% in January to 11.5% currently in line with the decline in prices.
U.S. industrial production unexpectedly fell in May as manufacturing and mining activity remained weak, a sign that a strong dollar and spending cuts in the energy sector continued to constrain economic growth.
The U.S. Comex gold futures retreated 1.61% in the past two days to $1,175.20 on Thursday compared to -0.63% for the S&P 500 Index and -0.15% for the Euro Stoxx 50 Index. The Dollar Index also declined 0.39% to 95.461 in the same period while the crude oil futures have plunged 5.32%.