Gold prices fell for the third consecutive day, dropping below $3,980, amid concerns over a Federal Reserve interest rate hike and attention on US-Iran negotiations.
Gold prices fell for the third consecutive day, dropping below $3,980, amid concerns over a Federal Reserve interest rate hike. This pushed gold's second-quarter performance to its worst since 2013. Attention is also focused on US-Iran negotiations.
On July 1, 2569, at 10.35:3 AM, Bloomberg News reported that gold prices fell for the third consecutive day on Wednesday (July 2) as investors assessed signals from the U.S. Federal Reserve (Fed) that it might further tighten monetary policy and monitored progress on peace negotiations between the United States and Iran.
Spot gold prices fell below $3,980 per ounce after declining a total of 2% in the previous two days and hitting their lowest level since November. Cleveland Fed President Beth Hammack stated that there is insufficient evidence that current interest rates are pressuring the economy and that the Fed may need to raise rates to bring inflation back to its 2% target.
Regarding the situation in the Middle East, senior US government officials revealed that Jared Kushner and Steve Whitkoff, the US negotiators, had positive discussions with regional leaders in Qatar, while technical discussions with Iran continue to progress.
Gold fell 14% in the second quarter, its worst quarterly performance since 2013, after hitting a record high in January. The market was pressured by expectations that the Federal Reserve might raise interest rates later this year to combat persistent inflation, even as energy prices fell following a temporary peace agreement between the US and Iran. Higher interest rates are generally a negative factor for gold, as it is a non-interest-bearing asset.
Ahead of the release of U.S. employment data later this week, the latest economic figures already reflect the strength of the economy. Job openings in May remained virtually unchanged, indicating stable labor demand coupled with improved employment, which may pave the way for the Fed to maintain a tight stance in assessing the direction of inflation.
Technically, gold is still showing signs of weakness after the 200-day moving average fell below the 50-day moving average, a pattern known as a Death Cross and often seen as a signal of a long-term downtrend.
Li Xing Gan, Strategy Advisor at Exness. It was noted that the Death Cross signal further reinforces the negative outlook and continued selling pressure in the gold market. However, this signal is a lagging indicator and may not reflect a short-term recovery if investment sentiment improves.
As of 11.33:2 AM Singapore time, the spot price of gold fell 0.8% to $3,977.76 per ounce, while the Bloomberg Dollar Spot Index rose 0.2%. Silver, which had plummeted 22% in the second quarter, fell another 1.4% to $57.79 per ounce. Platinum and palladium also declined.
refer : bloomberg.com
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