2023-05-23 10:45:00
© Archyde.com. For these reasons, gold continued to decline in today’s trading
Arabictrader.com – The yellow metal prices recorded strong declines during trading today, Tuesday; In conjunction with the rise in the US and US bond yields, in addition to the release of the results of US President Biden’s meeting with Republican President McCurry regarding the debt ceiling, in light of the markets’ anticipation for the release of the US manufacturing and services PMI data scheduled for release today, which may have an impact on both the US dollar. and metal.
Gold prices now
On the sidelines of today’s trading, spot gold contracts witnessed strong pressure by 0.74% and recorded regarding $1,957.21 an ounce, and at the same time, it recorded a decline of 1.04% and reached $1,974.90 an ounce.
The rise of the US dollar index weakens the attractiveness of gold prices
The rise in the US dollar index, which measures the performance of the US currency once morest a basket of six other major foreign currencies, had a negative impact on the price movements of gold in today’s trading, once morest the backdrop of an inverse relationship between the US dollar and gold. It is usual that the rise of the US dollar weakens the attractiveness of gold. The prices of the commodities denominated in it, especially the prices of the gold metal because it raises the costs of purchasing it.
At the same time, the US dollar index increased by 0.14% and reached the level of 103.215 points, supported by the statements of some hawkish members of the US Federal Reserve regarding tightening monetary policy, which reinforced the decline in gold prices.
In this regard, US Federalist James Bullard stated; That the bank should raise interest rates more this year, perhaps by 50 basis points, in order to fight inflation, especially since the labor market is still strong, and this is positive for the movements of the US dollar, which caused gold prices to decline and continue the downward momentum.
Rising US bond yields put pressure on gold levels
Also, gold prices suffered strong declines during today’s trading, due to the rise in US bond yields. The 10-year US bond yields increased by 0.5% and settled near the level of 3.714 points, and this reinforced the decline in gold prices.
Results of the Payne-McCarthy meeting regarding the US debt ceiling
In addition, gold prices found some pressure in today’s dealings, coinciding with the end of the meeting of US President Joe Biden and the House of Representatives led by Republican President Kevin McCarthy today, regarding the debt ceiling, as McCarthy stated that their meeting was fruitful, although they did not reach an agreement on the issue. The US debt ceiling, and the tone of the discussion has improved from previous times, adding that talks will continue between employees until an agreement is reached, and this is support from the levels of the US dollar, which pushed gold prices to decline.
Wait for the release of some US economic data
Moreover, the markets are awaiting the release of the US Manufacturing and Services PMI data due later today; Its performance may be reflected in the upcoming movements of the US dollar and gold prices.
other precious metals prices
With regard to the prices of other precious metals, other than the prices of gold, spot contracts recorded a decrease during the day’s trading, by 1.71%, and reached $23.23. This also fell by 0.98%, and recorded regarding $1,476.59. Likewise, platinum contracts decreased by 0.68%, reaching $1,063.10.
1684900429
#reasons #gold #continued #decline #todays #trading #Arab #trader
