News

Gold prices are falling and heading for weekly losses

  • 15 July, 2022
  • 4:21 pm EEST

Gold prices declined during trading today, Friday, July 15, 2022, to continue their path of the fifth consecutive weekly decline.

The continued rise in the dollar and fears of higher US interest rates affected the demand for the yellow metal.

 

Gold Prices Today

The price of gold futures contracts for August delivery decreased by 0.21%, to record the level of $1708.40 an ounce.

And gold prices ended their trading, yesterday, Thursday, by about $30, to record the lowest level in more than 15 months, with the rise in the yields of Treasury bonds and the US dollar.

The price of silver futures contracts – September delivery – increased by 1.47% at $ 18.67 an ounce, according to data seen by the specialized energy platform.

The spot platinum price rose about 0.40%, to record $851.38 an ounce, and the spot palladium price fell 2.28% at $1,853.65 an ounce.

 

Dollar Strength

“Gold has pulled back against the strength of the US dollar this week, but it looks like it is trying to form a temporary base before $1,700 an ounce,” said Geoffrey Haley, chief analyst at OANDA.

“However, gold is not showing any meaningful signs of bullish momentum for a limited recovery in the $1750 region,” he added.

The dollar settled at a 20-year high, and continued to suppress demand for US-priced gold among foreign investors, after the smaller metal fell more than 2% on Thursday.

 

Gold Market Conditions

“In the bigger technical picture, gold remains weak, with risks skewed to the downside,” said Halley.

Two of the US Federal Reserve’s more hawkish policymakers said on Thursday that they favored another 75 basis point rate hike at the Fed’s monetary policy meeting this month, rather than the larger rate hike that traders raced to price after the Fed’s monetary policy meeting this month. Wednesday’s report showed that inflation increased more than expected.

Higher interest rates and bond yields raise the opportunity cost of holding non-yielding bullion.

 

US Bonds

Yields on the benchmark 10-year US Treasury fell on Friday, slightly supporting gold.

“Investment demand for gold is weakening,” ANZ said in a note, adding that gold would remain under pressure from expectations of a large Fed rate hike.

 

 

 

 

 

 

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