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Gold: At a low of 14 weeks, in the worst week of the last 11 months

The price of gold closed at a 14-week low on Friday, with the precious metal extending its negative streak for a fourth 5-day period, as the demand for the dollar put pressure on it.

As inflation continues to rise, the high cost of living continues to weigh on households and Wall Street, while increasing demand for the dollar, which has risen to more than 1% a week and hit a 20-year high.

“Yesterday gold plunged below the ‘normal’ 200-day moving average. A consolidation below $ 1,830 would boost the bearish signal,” said Alex Kuptsikevich, an FxPro analyst.

That would pave the way for a 25% drop to $ 1,350 near the 2015-2018 high, he said, although there was room to avoid a negative scenario.

“If we see a rise in buyers in the coming days, we could say that gold is in correction,” Kuptsikevich said.

In this climate, the gold June delivery lost $ 16.40, or 0.9%, to reach $ 1808.20, its lowest level since Feb. 4, 2022, according to Dow Jones Market Data. During the week, gold fell by 3.9%, its biggest drop since the corresponding period ended on June 18, 2021, when it fell by 5.9%.

The silver July delivery fell 9.3 cents, or 0.4%, to $ 20.68 an ounce, down 7.5% on the week.

As for the other metals, o copper July delivery slipped 0.8% to $ 4,068 a pound on Friday. The July contract for platinum rose 0.3% to $ 934.20 an ounce, while palladium June delivery jumped 2.4% to $ 1,906 an ounce.

Source: Capital

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