Gold has endured six consecutive sessions of declines to hit a near seven-month low as a strong US dollar and the prospect of higher US interest rates have made the precious metal less attractive. Currently, spot gold prices have dropped to their lowest level since early March. US gold futures prices also decreased 1% to 1,847.20 USD.
Jim Wyckoff, senior analyst at Kitco Metals, predicts that interest rates will stay higher for longer, which is a bearish factor in precious metals markets. Gold price may drop below 1,800 USD in the near future. Because the US dollar's rise may not end soon, putting pressure on the gold market. Accordingly, the US dollar (.DXY) rose 0.6%, making gold less attractive to holders of other currencies.
CME's FedWatch tool rates the likelihood that the Federal Reserve will leave interest rates unchanged at the current 5.25% - 5.50% range this year at 55%.
Federal Governor Michelle Bowman said she is still willing to support another interest rate hike if data shows progress on disinflation is stalling or happening too slowly.
Jim Wyckoff, senior analyst at Kitco Metals, predicts that interest rates will stay higher for longer, which is a bearish factor in precious metals markets. Gold price may drop below 1,800 USD in the near future. Because the US dollar's rise may not end soon, putting pressure on the gold market. Accordingly, the US dollar (.DXY) rose 0.6%, making gold less attractive to holders of other currencies.
CME's FedWatch tool rates the likelihood that the Federal Reserve will leave interest rates unchanged at the current 5.25% - 5.50% range this year at 55%.
Federal Governor Michelle Bowman said she is still willing to support another interest rate hike if data shows progress on disinflation is stalling or happening too slowly.
TP1: 1840
TP2: 1840
SL: 1780