gold falls this Tuesday June 20, while the operators wait for the Testimony of the Chairman of the United States Federal Reserve, Jerome Powellwhich will take place later this week, for more clues about the trajectory of interest rates.
Gold cash falls 1% to $1,944.90 per ounce. In this way, the metal falls for the third consecutive day and touches its minimum value in almost a month.
Although dollar weakness was driving gold, bullion is likely to stay in range before Powell’s statements before Congress on Wednesday and Thursday, said Peter Fertig, an analyst with Quantitative Commodity Research.
“Further Guidance from the Federal Reserve Chairman on the outlook for interest rates in the United States should provide some guidance to US Treasurieswhich have weakened after the revaluation of at least one more 25 basis point rate hike this year,” analysts at investment bank SP Angel wrote in a note.
Commerzbank analysts cut their gold price estimate for the second half of 2023 from $50 to $2,000 an ounceseeing another rate hike by the Fed in July and no rate cut until the second quarter of next year.
Traders see a 74% chance of a 25 basis point rate hike in Julyand no rate cuts are expected until the start of 2024, according to the CME’s Fedwatch tool.
While, European and Asian stocks fell after interest rate cuts in China fell short of expectations and the market will await more details on Beijing’s plans to shore up a faltering economic recovery.
Among other precious metals, the silver spot fell 0.7% to $23.79 an ounce, the platinum was down 1.1% at $965.52 and the palladium It was down 0.6% at $1,398.80.
Source: Ambito
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