Gold prices fell today, Tuesday, June 14, 2022, in volatile trading, after the session started on the rise, recovering from its lowest level in 4 weeks.
This comes with a pause in the rise of the dollar and US Treasury bond yields, and with increasing bets on monetary policy tightening by the Federal Reserve, during its meeting tomorrow, Wednesday.
Gold Prices Today
The price of gold futures contracts – August delivery – decreased by 0.8%, equivalent to $1 , to reach the level of $1818.80 an ounce.
Yesterday, Monday, gold prices ended trading down by about $44, to the lowest level in 3 weeks, as US bond yields rose, according to the specialized energy platform.
On the other hand, the price of spot delivery of the yellow metal rose by 0.53%, to reach $ 1828.88 an ounce, after falling to its lowest level since May 19 at $ 1810.90 earlier in the session.
The price of silver futures contracts – for July delivery – also decreased by 0.07%, at $21.11 an ounce.
The spot platinum price decreased by 0.43%, at $927.99 an ounce, and the spot palladium price rose 0.48%, at $ 1780.83 an ounce.
Gold Market Conditions
“Gold is getting some support from potential hikes in US interest rates,” said Stephen Innes, managing partner at SBI Asset Management.
The dollar held near a two-decade high on Monday, sending dollar-priced bullion prices down nearly 3%.
For his part, Matt Simpson, chief market analyst at City Index, said: “Gold faced selling pressure, as investors decided to either go to liquidity, or empty gold, to monitor the market conditions, awaiting the US Federal Reserve’s decision.”
He added that a 75 basis point rise could see gold come under more pressure, even if it subsequently regains its position as an inflation hedge.
Late Monday, expectations that the Federal Reserve will raise 75 basis points at its meeting tomorrow, Wednesday, jumped to 96% from 30%, earlier in the day.
Higher interest rates and higher US short-term bond yields increase the opportunity cost of holding bullion, which does not pay any interest.
Spot gold may end its bounce around resistance at $1,832 an ounce, and resume its decline towards $1,808 thereafter, according to technical analyst Wang Tao.