Gold prices rose in trading Monday, May 30, 2022, with the weakness of the US dollar, although the gains turned some investors to riskier assets in Asia.
Despite the precious metal’s gains, in recent days; This will not prevent a new monthly decrease.
Gold Prices Today
The price of gold futures contracts – August delivery – increased by 0.21%, to reach the level of $ 1858.10 an ounce.
Gold prices ended their trading on Friday with a rise; The yellow metal achieved a weekly gain of about 0.5%, equivalent to $8.9.
The spot price for the yellow metal also rose by 0.15%, to reach $1,855.37 an ounce.
At the same time, the price of silver futures contracts – July delivery – down by 0.08%, at $22.07 an ounce.
The spot platinum price rose by 0.84%, at $961.82 an ounce, and the spot palladium price increased 0.21%, at $2068.05 an ounce.
Matt Simpson, chief market analyst at City Index, said: “With the three-day holiday in the US, which means less liquidity than usual, and a lack of top-tier data until next Wednesday, we may find that gold will remain flat in its narrow range around $1,850 sometime. No new catalyst appeared.
Federal government offices, stock and bond markets, and the Federal Reserve will be closed Monday for the Memorial Day holiday in the United States.
The dollar fell for the third consecutive session; This makes bullion more attractive to buyers who hold other currencies.
Gold Market Situation
Despite mostly positive supply, the yellow metal has been since hitting a 3-month low at $1,786.60 an ounce on May 16; Gold prices are on their way to the second consecutive monthly decline for the first time since March 2021, down about 1.9% so far.
Simpson points out that a large part of gold’s weak performance is due to investors moving into cash with lower stock markets, while the shutdown in China has also dampened demand.
He added, “June is usually a bearish month for gold, but this seasonal pattern appears to have shifted forward by one month.”
Asian stocks followed a rally on Wall Street; Investors are betting on an eventual slowdown in US monetary policy tightening, albeit after sharp hikes in June and July.
Higher short-term interest rates in the United States increase the opportunity cost of holding non-yielding bullion.
Spot gold is expected to retest resistance at $1,867 an ounce, and a break above there could lead to gains in the $1,887-1892 range, according to technical analyst Wang Tao.