Gold retreats, hovers near five-year highs after China Caixin Services Data release

Gold slid on Thursday trade in Asia but lurked above its five-year highs following the release of China Caixin Services Data. Investors also await key U.S. economic data for hints about the economic outlook.

Gold futures lowered 0.13% to $1,907.45 by 11:57 PM ET. However, it remained above the $1,900-mark. The dollar, which usually moves inversely to gold, advanced on Wednesday, and the benchmark 10-year U.S. Treasury yield dropped below 1.60%.

China’s Caixin Services Purchasing Managers Index (PMI) released earlier posted a 55.1 reading in May, still above the 50-mark indicating expansion. It followed the Caixin Manufacturing Purchasing Managers’ Index (PMI) released on Tuesday, which increased to 52 in May, the highest level since December 2020.

Meanwhile, investors now await U.S. initial jobless claims due later today, including non-farm payrolls due on Friday.

In other precious metals, silver lost 0.1%, while palladium and platinum gained 0.2%.