Gold prices fell, during trading today, Friday, June 3, 2022, abandoning its highest level in a month, which it had achieved earlier.
Gold prices had started trading higher, driven by the weakness of the US dollar, which put bullion on the right track, on its way to achieving a third consecutive weekly gain.
Gold Prices Today
The price of gold futures contracts – August delivery – decreased by 0.14%, equivalent to $2.70, to reach the level of $1867.70 an ounce.
Yesterday, Thursday, gold prices ended up by about 23 dollars, with the decline of the US currency, and after economic data.
The price of spot delivery of the yellow metal decreased by 0.22%, to reach $ 1864.74 an ounce.
On the other hand, the price of silver futures contracts – for July delivery – increased by 0.55%, at $22.40 an ounce.
The spot platinum price increased by 0.15%, at $ 1024.91 an ounce, and the spot palladium price fell 1.31%, at $ 2016.10 an ounce.
Gold Market Situation
“We think prices have seen a significant drop around $1,828 this week, and with the bullish momentum returning, a move towards $1,900 looks likely,” said Matt Simpson, chief market analyst at City Index.
Gold prices rose more than 1% on Thursday, buoyed by a drop in the dollar and data that showed private sector payrolls in the United States rose less than expected last month.
The signs of the economic crisis can be supportive of the demand for gold; Investors consider it a safe asset.
The Return Of Speculation
“We also note that large speculators and managed funds increased their net long exposure to gold last week, which suggests there is support at lower levels,” Simpson added.
Meanwhile, the US Federal Reserve is likely to continue tightening monetary policy beyond the expected half-percentage point interest rate increases at each of its next two meetings.
Higher short-term interest rates in the United States increase the opportunity cost of holding interest-free gold.
Spot gold may test resistance at $1,879 an ounce, and a break above there could lead to gains of up to $1,892, according to technical analyst Wang Tao.