Gold Price Update: A marked fall from the record high
- Posted on July 21, 2024
- News
- By Arijit Dutta
- 435 Views
Gold prices retreated 1.8% from Wednesday's record high of $2,483.60, settling at $2,401.49 per ounce. The decline is attributed to profit-taking, a stronger dollar, and shifting expectations for U.S. interest rate cuts. Other precious metals also experienced losses.
Specie retreated on Friday, after reaching new record highs during the week trading session. Spot gold declined by 1 % by 1422 GMT. 8% to $2,401. 49 per ounce, significantly lower than that of Wednesday’s peak at $2,483 an ounce. 60. This correction is occurred while investors are taking profit and the dollar is in upward trend and it also reveal that precious metals are very sensitive in terms of price movements.
The upward trend in commodity prices witnessed in the last one week was led by the rising optimism over the potential cut in the US interest rates in September. Nonetheless, the market seems to have lost the interest it had at the time and a selloff is the result. Like the spot market, their U. S. gold futures also dropped, by about 2. 2% to $2,403. 70.
Market analyst Alex Kuptsikevich pointed out that this kind of correction after new high is a rather typical pattern for gold in the recent months. He only notes that such retreats often re-establish themselves within two weeks, but traders should wait for bearish signals indicating a reversal of the bulls.
For this reason, the following factors have played a role in putting pressure on the gold prices: This means that the U. S. dollar was slightly weaker by 0. Increasing by 1% against other currencies and the increases in benchmark 10-year Treasury yields have made gold less appealing to investors. Further, while there has been some moderation in the expectations of inflation and Federal Reserve chair Jerome Powell has recently said that the central bank is close to achieving its inflation target, the market still expects a 98% probability of another rate cut in September.
In the physical Gold market, price discounts continue to be seen in Asia but the demand is still low. The public is rather not willing to invest in other assets, but rather locked in and take advantage of the recent price increase to sell their stocks.
Others also registered declines with silver losing approximately 3 percent to $29. 13 to $ 17 per ounce while platinum had a minimal drop of 0. 2% to $965. 5, while platinum remained stable at 90 and palladium decreasing at 1. 2% to $918. 93. The three metals are currently down on the week, as well.
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While the gold market is in this correction period, people who have invested in such markets and other analysts will be focusing on other economic factors and policies from the central banks that will determine the future of the precious metal.