Thursday, 27 June 2024 01:40 WIB | GOLD |GOLDEMAS
Gold prices slipped 1% to their lowest level in more than two weeks on Wednesday, weighed by a stronger dollar and higher bond yields, while traders looked forward to U.S. inflation data due later this week.
Spot gold was down 0.8%, at $2,301.16 per ounce by 2:03 p.m. ET (1803 GMT), its lowest since June 10.
U.S. gold futures settled 0.8% lower, at $2,313.2.
“At this point, market may very well be responding to the firmer U.S. dollar and we continue to price in the possibility that the U.S. Federal Reserve is unlikely to move (interest rates) earlier in the summer,” said Bart Melek, head of commodity strategies at TD Securities.
The dollar rose 0.4% to a near two-month peak against its rivals, making gold more expensive for other currency holders, while benchmark U.S. 10-year yields hit a near two-week high.
The focus this week will be on the U.S. Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, which could shed light on the central bank’s interest-rate path.
Gold prices fell to their lowest in nearly two weeks on Wednesday as the dollar firmed, while investors awaited a report on the Federal Reserve’s preferred inflation gauge due later this week for the latest clues on the central bank’s rate cut prospects.
Spot gold fell 0.5% to $2,308.00 per ounce, hitting its lowest since June 14. U.S. gold futures also fell 0.5% to $2,319.50.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.
The dollar rose 0.3% against its rivals, making gold more expensive for other currency holders, while benchmark 10-year yields also edged higher.
Source : Reuters