Gold prices have extended their slide for a sixth consecutive session, reaching a nearly seven-month low. The robust US dollar and the potential for higher interest rates in the United States have dampened the appeal of this precious metal.
Spot gold contracts fell by 0.8% to $1,835.40 per ounce, their lowest since March 10th. Meanwhile, US gold futures dropped by 0.7% to $1,853.00 per ounce.
There is growing concern that interest rates may remain elevated for an extended period, seen as negative for the precious metals market. Some believe gold could dip below $1,800 per ounce in the short term, according to Jim Wyckoff, a senior analyst at Kitco Metals.
The US dollar strengthened by 0.4% on Monday, making gold less attractive for investors with other currencies.
Traders currently give a 55% chance that the US Federal Reserve will keep interest rates between 5.25% and 5.5% for the rest of the year, according to CME's FedWatch tool.
Since surpassing $2,000 per ounce in early May 2023, gold has fallen over 11%, driven by rising yields on the 10-year US Treasury bonds, making gold less appealing.
The market is focused on Federal Reserve Chairman Jerome Powell's speech and upcoming employment data releases later this week.
In addition to gold, spot silver prices dropped 3.4% to a six-month low of $21.40 per ounce.
Citi analysts noted that the growing use of solar energy and electric vehicles globally will boost industrial silver demand from 2023 to 2025, benefiting the precious metals market.
Spot gold contracts fell by 0.8% to $1,835.40 per ounce, their lowest since March 10th. Meanwhile, US gold futures dropped by 0.7% to $1,853.00 per ounce.
There is growing concern that interest rates may remain elevated for an extended period, seen as negative for the precious metals market. Some believe gold could dip below $1,800 per ounce in the short term, according to Jim Wyckoff, a senior analyst at Kitco Metals.
The US dollar strengthened by 0.4% on Monday, making gold less attractive for investors with other currencies.
Traders currently give a 55% chance that the US Federal Reserve will keep interest rates between 5.25% and 5.5% for the rest of the year, according to CME's FedWatch tool.
Since surpassing $2,000 per ounce in early May 2023, gold has fallen over 11%, driven by rising yields on the 10-year US Treasury bonds, making gold less appealing.
The market is focused on Federal Reserve Chairman Jerome Powell's speech and upcoming employment data releases later this week.
In addition to gold, spot silver prices dropped 3.4% to a six-month low of $21.40 per ounce.
Citi analysts noted that the growing use of solar energy and electric vehicles globally will boost industrial silver demand from 2023 to 2025, benefiting the precious metals market.
Comment:
The market is gaining momentum and will continue to decline in the near future, that is my opinion
