Gold prices dropped below the $1,900 mark for the first time since mid-March 2023 due to the rise in the dollar index by 0.4 percent. This made gold less attractive to international buyers. Additionally, yields on 10-year US government bonds increased.
David Meger, the director of metals trading at High Ridge Futures, mentioned that the drop in prices from $2,000/oz to $1,900/oz could potentially bring some profit.
Last week, US jobless claims saw the biggest decline in 20 months, indicating a strong labor market that supported the GDP data for the first quarter.
Chairman Jerome Powell of the Federal Reserve stated that most central bank policymakers expect to raise interest rates at least two more times by the end of the year due to high US inflation, which is 2% above the target level, and a tight labor market.
Although gold is typically considered a hedge against inflation, an increase in interest rates would decrease its appeal as a non-yielding asset. The current expectations for interest rates make it more likely for gold to end the quarter with a decline, which hasn't happened since September 2022.
Investors are eagerly awaiting the release of the May personal consumption expenditures (PCE) data, which is the Federal Reserve
David Meger, the director of metals trading at High Ridge Futures, mentioned that the drop in prices from $2,000/oz to $1,900/oz could potentially bring some profit.
Last week, US jobless claims saw the biggest decline in 20 months, indicating a strong labor market that supported the GDP data for the first quarter.
Chairman Jerome Powell of the Federal Reserve stated that most central bank policymakers expect to raise interest rates at least two more times by the end of the year due to high US inflation, which is 2% above the target level, and a tight labor market.
Although gold is typically considered a hedge against inflation, an increase in interest rates would decrease its appeal as a non-yielding asset. The current expectations for interest rates make it more likely for gold to end the quarter with a decline, which hasn't happened since September 2022.
Investors are eagerly awaiting the release of the May personal consumption expenditures (PCE) data, which is the Federal Reserve
