On Monday, gold dropped for a sixth straight session, reaching a low not seen in nearly seven months as a strong dollar and the possibility of rising U.S. interest rates dimmed the metal’s appeal.
By 9:54 a.m. EDT (1354 GMT), spot gold was down 0.8% at $1,835.40 per ounce, its lowest level since March 10. To $1,853.00, U.S. gold futures saw a 0.7% decline.
“The bearish aspect of the precious metals market has been the assumption that interest rates would remain elevated for a very long time. In the foreseeable future, gold prices may go below $1,800, according to Jim Wyckoff, senior analyst at Kitco Metals.
Gold declines for a sixth session in a row
“Trends on the currency markets typically last longer and are stronger. The gold market is under pressure due to the potential continuation of the US dollar’s growth.
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The value of gold has decreased among holders of other currencies as the U.S. dollar (.DXY) increased by 0.4%.
According to CME’s FedWatch tool, traders are factoring in a 55% chance that the Federal Reserve will maintain interest rates in their current level of 5.25%-5.50% this year.
Gold prices have dropped more than 11%, or $230, since surging beyond the crucial $2,000 per ounce threshold in early May. This decline is being attributed to a strong increase in benchmark U.S. Treasury yields, which has made the non-yielding gold less appealing.
The market is now paying attention to the speech by Fed Chair Jerome Powell later in the day as well as information on job vacancies, private hiring, and U.S. non-farm payrolls throughout the coming week.
Spot silver decreased 3.4% to an ounce’s more than six-month low of $21.40.
Strong solar PV installations and increasing EV penetration globally should support strong growth in industrial demand for silver for 2023–25 and continue to be a drag on prices, according to Citi analysts in a note.
Palladium dropped 2.8% to $1,210.54 and platinum dropped 1.3% to $893.12.
