Gold prices witnessed a slight decline in trading today, Tuesday, stable near its lowest level in more than two weeks, after falling by more than $ 45, at the end of trading on Monday, recording the largest daily drop in more than 3 months.
This coincides with the rise in the dollar’s price amid bets for a faster increase in interest rates, after US President Joe Biden supported Federal Reserve Chairman Jerome Powell for another term.
Gold Prices Today
The price of gold futures contracts -December delivery- decreased by 0.08%, to reach the level of $1807.50 an ounce,
The spot price for the yellow metal also decreased by 0.06%, recording $1803.59 an ounce.
At the same time, the price of silver futures contracts – for December delivery – fell by 0.91%, to $ 24.14 an ounce.
The spot platinum price also rose by 0.36%, recording $1017.86 an ounce, while the spot palladium price rose 0.62%, reaching $171.10 an ounce.
The dollar index reached a 16-month high, after Powell was nominated for the top US Federal Reserve position on Monday, raising the cost of bullion for buyers holding other currencies.
“There won’t be any sudden optimism shift due to the nomination, but a continuation of the current policy with a faster tapering that officials introduced last week,” said Stephen Innes, managing partner at SBI Asset Management, adding that the slump in gold prices was more than an “extraordinary” reaction. toward the dollar.
Higher interest rates increase the opportunity cost of the metal without interest.
On the technical side for gold prices, $1,780 should be well defended on the bottom line, and on the upside, we need to see a sustained close above $1830-1850 to resume bullish momentum.
Investors also kept tabs on the rising coronavirus cases in parts of Europe, which led to restrictions.
“The emergence of the Covid virus in Europe may cause central banks to back off expectations of rate hikes, and gold is still needed in this type of environment,” said SBI analyst Innes.
“Since silver is broadly following gold, we need to see sustained bullish momentum for gold for silver to rally, possibly outperforming gold,” Parrott said.
SOURCE : ATTAQQA