This decline is being influenced by the dollar index, which shows an increase of 0.2% compared to other currencies, thus reducing the attractiveness of gold for investors holding other currencies.
He gold price is experiencing a sharp decline this Tuesday due to the strengthening of the US dollarwhich generates expectations among investors about possible announcements of the Federal Reserve in relation to cuts in interest rates.
At this time, spot gold is down 0.5%, standing at $2,313.11 per ounce. Similarly, US gold futures are declining 0.4%, reaching $2,321.70 an ounce. ANDThis decline is being influenced by the dollar index, which shows an increase of 0.2% compared to other currencies, thus reducing the attractiveness of gold for investors holding other currencies.
Gold had reached a historic milestone on April 12, reaching $2,431.29 per ounce, driven by significant central bank purchases and growing demand from Chinese retail investorsamid rising geopolitical tensions.
In April, the Chinese central bank had added 60,000 troy ounces of gold to its reserves, extending an 18-month period of consecutive purchases, despite high gold prices.
Gold: what data the market analyzes
Investor attention is focused on comments from Federal Reserve officials later in the week, including Neel Kashkaripresident of the Bank of the Minneapolis Federal Reservewho will speak later in the day.
Thomas Barkin, president of the Richmond Fed, stated the day before that the current level of interest rates should be enough to moderate the economy and bring inflation back to the 2% target set by the central bank.
According to CME’s FedWatch tool, futures traders in CME funds Fed estimates more than 67% the likelihood that the US central bank will begin cutting rates in September. This is because lower interest rates decrease the opportunity cost of holding bullion, which does not earn interest.
As for other precious metals, spot silver is experiencing a drop of close to 1%, settling at $27.18 per ounce, while platinum is trading stable at $952.59 and palladium loses 0.6 %, trading at $971.50.
Source: Ambito
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