Inability to escape from the pressure cord of the last interval, gold shows today Thursday as well and is very close to breaking the basic support levels.
As the prospect of a possible escalation of geopolitical tensions between Iran and Israel recedes, investors are turning their backs on safe havens such as precious metals and government bonds. At the same time, the prospect of the Federal Reserve keeping interest rates high for longer has weighed on the precious metal, as higher interest rates raise the opportunity cost of investing in gold.
Spot gold was down 0.1% at $2,313.62 an ounce, while June futures were down 0.24% at $2,232.70 an ounce.
The strengthening dollar, which remains at recent five-month highs, is also weighing on metal prices.
Flirting with $2,300 support, more interest rate cues expected
The spot price is now below the support level of $2,300 an ounce, which could herald more near-term losses for the precious metal in futures contracts.
However, gold’s next move is expected to be largely driven by data on the US economy and interest rates.
First quarter US GDP data due later on Thursday is expected to show whether the world’s largest economy remained strong in early 2024.
PCE data – which is the Fed’s preferred inflation gauge – is likely to have a bigger impact on gold as it is directly linked to the central bank’s interest rate outlook.
And other precious metals also fell on Thursday, following recent highs over the past week. Platinum futures were down 0.3% at $910.30 an ounce, while silver futures were down 1% at $27.078 an ounce.
Tags: Gold Remains downward trajectory risk