Gold Prices Fell Down: Lowest In The Year
Gold Prices Fell Down: Lowest In The Year: Gold slipped back towards its lowest in more than six months on Monday as the currencies of key consumers weakened, making it more expensive for them to buy dollar-priced bullion.
The Indian rupee is also near a record low against the dollar, Japan’s yen is at its weakest since mid-May and the value of the euro was eroded by the potential for a row over migration policy to fracture the German government.
The increasing strength of the dollar has helped to drive down spot gold by more than 8 per cent from its April high of $1,365.23. It was down 0.3pc at $1,249.11 an ounce by 1207 GMT on Monday, close to last Thursday’s low of $1,245.32, the weakest since early December. US gold futures for August delivery were down 0.3pc at $1,250.90 an ounce.
Funds and money managers have cut their net long position on the Comex exchange to the lowest since January 2016, while gold holdings by ETFs tracked by Reuters are down 3.6pc, or more than 2 million ounces, from late May.
Investors were looking ahead to the minutes of a June Federal Reserve meeting and US employment data on Friday, with an aggressive tone by the Fed or strong jobs numbers likely to be seen as bolstering the case for higher US interest rates. That could drive gold prices even lower because higher rates tend to strengthen the dollar and also boost bond yields, reducing the appeal of non-yielding bullion.
On the technical side, support was at the psychological level of $1,250 and gold’s December low of $1,236.60, ScotiaMocatta analysts said. Technical indicators suggest that gold could fall further, they added.
Silver was down 1pc at $15.92 an ounce, near Thursday’s six-and-a-half-month low of $15.88. Platinum was down 1pc at $838.80 an ounce after touching its lowest since January 2016 at $831.71, while Palladium fell 0.6pc to $947.10.
For More Information & Videos Subscribe To Our YouTube Channel