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

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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.

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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.

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“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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