17.7 C
New York
Monday, May 20, 2024

Today’s gold price: Lower rates counteract the strengthening of the dollar, keeping gold just over the $1,800 mark

BusinessToday's gold price: Lower rates counteract the strengthening of the dollar, keeping gold just over the $1,800 mark

Gold prices inched up during turbulent trading on Monday due to a drop in Treasury rates, which held prices above the $1,800 mark and barely countered pressure resulting from increased levels of the United States dollar.

By 3:19 GMT, the the price of gold had increased by 0.1 percent, reaching $1,811.99 per ounce. Gold futures in the United States increased by 0.6 percent to $1,812.10 per ounce.

On Friday, the price of gold in the form of bullion dropped to a level that hasn’t been seen in the previous five months, settling in at $1,783.50.

“Once again, we saw buyers support gold with its break below $1,800 on Friday,” said Matt Simpson, senior market analyst for City Index. “This allows the potential for gold to rise over the near term,” he added. “U.S. yields are continuing to retrace, which allows for the potential for gold to rise.”

Benchmark On Friday, rates on 10-year U.S. Treasury notes reached their lowest level in a month, which boosted the price of non-yielding gold.

It’s important to keep in mind that hedge funds and huge speculators are expanding their short bets on gold, and Simpson warned that another round of selling may be in store if the price drops below $1,800.

After playing a big role in the bullion market’s worst quarterly performance in more than a year, the value of the dollar continued to remain near to recent highs over the last two decades, which continued to make gold priced in dollars less appealing to purchasers holding other currencies.

On Monday, Asian shares got off to a cautious start as a string of weak U.S. data highlighted negative risks for this week’s report on payrolls for June. At the same time, the commotion around a possible recession was still fueling a relief rally in government bonds.

On Friday, the holdings of SPDR Gold Trust, the biggest gold-backed exchange-traded fund in the world, decreased by 0.8 percent, coming in at 1,041.9 tonnes. This number is down from 1,050.31 tonnes on Thursday.

On Monday, July 4, in observance of the Fourth of July holiday, all federal government offices, as well as the stock and bond markets, as well as the Federal Reserve, will be closed.

The price of an ounce of spot silver down by 0.2 percent, reaching $19.84, while the price of an ounce of platinum decreased by 0.5 percent, reaching $884.49, and the price of palladium decreased by 1.3 percent, reaching $1,934.40.

Check out our other content

Check out other tags:

Most Popular Articles