Spot gold gained 0.3% to $1,817.12 per ounce, after hitting a Jan. 31 low of $1,786.60. US gold futures closed 0.3% higher at $1,814.
The slight rebound in gold is attributed to a fall in Treasury yields and a small decline in the dollar, said RJO Futures senior market strategist, Bob Haberkornwho added that the general trend of the dollar was “still strong as the Fed is being aggressive with its rate hikes.”
“Taking all of this into account, gold is holding up, should be significantly lower…it will find support slightly below the $1,800 level. Also, there is huge demand for physical gold and silver.”
The dollar went down a bit, but still hovered near a two-decade high, making the metal expensive for buyers with other currencies.
The gold is considered a hedge against inflationbut raising interest rates to curb rising prices curbs appetite for bullion, which pays no interest.
“Many continue to view gold as vastly undervalued, and would be even more willing to buy the metal now that prices have weakened.”said Fawad Razaqzada, a market analyst at City Index.
Spot silver gained 2.2% at $21.53 an ounce, having hit its lowest since July 2020 on Friday.
Silver has been caught up in the sell-off in stocks and gold, and is also punished for being an industrial metal at a time when growth forecasts are being cut, said Rupert Rowling, market analyst at Kinesis Money.
Platinum rose 0.2% to $940.28 and palladium gained 3.9% to $2,019.7. Autocatalyst maker Johnson Matthey said the platinum market surplus should narrow this year and palladium markets are likely to return to deficit.
Economic slowdown in China
China has reported disappointing economic data for the month of April, underlining the great damage that the covid-19 lockdowns have caused in the country. The world’s second-largest economy reported staggering declines in retail sales and factory output, below market expectations.
Retail sales shrank 11.1% in April from a year earlier, China’s National Bureau of Statistics reported on Monday. That figure was well below the 6.1% drop forecast in a Reuters survey of economists, and also much lower than the 3.5% decline seen in March.
Industrial production fell 2.9% last month from a year earlier, reversing a 5% gain in March. This marks the worst contraction in industrial production since February 2020, when China’s economy came to a near standstill during the initial coronavirus outbreak. Unemployment also rose to the second highest level on record. The urban unemployment rate hit 6.1% in April, up from 5.8% in March, which was already at its highest point in 21 months. The only time China’s unemployment rate was higher was in February 2020.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
