Tue, June 18, 2024

Why Has Gold Fall Below $1,650?

gold

The copper markets anticipated quarterly output numbers from some of the biggest miners in the world, coming later this week. Meanwhile,  gold prices edged up on Monday but remained capped below critical support levels as investors worried about additional interest rate hikes by the Federal Reserve.

According to statistics, inflation in the United States is likely to remain high for a lot longer than first anticipated, leading to the worst week for gold prices in two months. The report anticipated more inflation-fighting rate increases at the Fed meeting in November. The likelihood that the Fed will increase interest rates by 75 basis points for a third consecutive month in November is almost exactly 100%, according to the markets. With the increase, interest rates in the U.S. will be at their highest point since late 2007—roughly 4%.

Outlook on the Market

Gold futures up 0.2% to $1,651.35 an ounce by 19:25 ET, while spot gold rose 0.1% to $1,646.02 an ounce (23:25 GMT). The previous week saw a greater than 3% decline in both instruments. The dollar was still strong and kept getting closer to the 20-year top it reached last month, which kept the pressure on the price of gold. U.S. Additionally, Treasury rates were trading at their greatest peaks since the financial crisis of 2008. The dollar has benefited from rising interest rates while suffering losses in gold prices this year as the opportunity cost of storing gold increased along with lending rates. Furthermore, despite a gradually worse prognosis for the global economy, the trend has eliminated the yellow metal’s attraction as a haven.

In terms of industrial metals, copper prices increased on Monday but remained restrained close to two-year lows as global economic growth slowed. Copper futures increased 0.5% to $3.4220 per pound. Red metal prices increased 1% last week due to a weaker dollar and indications that supply is becoming more constrained due to sanctions against Russia.

YOU MAY ALSO LIKE

Tether and a New York appeals court

Quick Look: Tether’s new synthetic dollar, aUSDT, represents a strategic push into

NZD/USD - NZD USD digital trading chart.

Quick Look: NZD/USD continues to decline, driven by a strong US Dollar

Adobe palace window with logo.

Quick Look: Adobe’s stock rose by 13% over the past week, trading

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Zenfinex Reports Revenue Surge but Faces Operating Losses

London-based broker Zenfinex, now operating as Taurex, has exposed its fiscal year 2023 financial results, which paint a complex picture of its economic situation. Zenfinex’s Fiscal Overview Zenfinex Limited’s revenue hit £848,306, a

BROKER NEWS

Broker News

Zenfinex Reports Revenue Surge but Faces Operating Losses

London-based broker Zenfinex, now operating as Taurex, has exposed its fiscal year 2023 financial results, which paint a complex picture of its economic situation. Zenfinex’s Fiscal Overview Zenfinex Limited’s revenue hit £848,306, a significant