Gold continues to decline under pressure from the USD
Spot gold contracts decreased 0.8% to 1,835.40 USD/oz, the lowest level since March 10. Gold futures contracts in the US slid 0.7% to 1,853.00 USD/oz.
“There is a theory that interest rates will stay higher for longer, and this is seen as a negative factor for the precious metals market. Gold price may drop below 1,800 USD/oz in the short term,” said Jim Wyckoff, senior analyst at Kitco Metals.
“Currency markets tend to increase more strongly and last longer. The rise in the price of the USD may not end soon, thereby putting pressure on the gold market."
On Monday, the USD increased 0.4%, making the precious metal less attractive to holders of other currencies.
According to CME's FedWatch tool, traders are pricing in a 55% chance that the US Federal Reserve (Fed) will keep interest rates unchanged in the current range of 5.25%-5.5% this year.
“There is a theory that interest rates will stay higher for longer, and this is seen as a negative factor for the precious metals market. Gold price may drop below 1,800 USD/oz in the short term,” said Jim Wyckoff, senior analyst at Kitco Metals.
“Currency markets tend to increase more strongly and last longer. The rise in the price of the USD may not end soon, thereby putting pressure on the gold market."
On Monday, the USD increased 0.4%, making the precious metal less attractive to holders of other currencies.
According to CME's FedWatch tool, traders are pricing in a 55% chance that the US Federal Reserve (Fed) will keep interest rates unchanged in the current range of 5.25%-5.5% this year.
Spot silver price slid 3.4% to the lowest in more than 6 months at 21.40 USD/oz.
“Global growth in solar PV installations and rising electric vehicle penetration will drive healthy growth in demand,” Citi analysts said in a report. demand for silver in the industrial sector in the period 2023-2025 and continues to be a beneficial factor for precious metal prices."