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Gold closed lower on Monday, marking its biggest daily drop in nearly two months and widening its April loss, which recorded its worst monthly performance since September.
Particularly, the gold delivery of June “fell” by $ 27.70, or 2.5%, to close at $ 1,863.60 an ounce, the biggest daily percentage drop since March 9, when it fell 2.7%, according to Dow data. Jones Market Data. The rise of the US dollar is partly responsible for the 2.1% loss in April, the biggest drop in seven months.
Alongside, May delivery silver lost 59 cents or 2.2% to $ 22.54 an ounce.
“Gold seems ready to test last week’s low near $ 1,872,” said Marc Chandler, chief strategic analyst at Bannockburn Global Forex.
The ICE US Dolla index rose 0.76%, trading close to last week’s highs, which were the highest in more than seven years. A stronger dollar can be a “weight” for commodities, making it more expensive for holders of other currencies.
Meanwhile, bond yields continued to rise, with the 10-year-old briefly reaching 3% on Monday, the highest level since 2018, but then fell slightly to 2.99%, according to FactSet.
In other metals, the July delivery of copper slipped 3.2% to $ 4,268 a pound.
Alongside, the platinum delivery in July lost 0.7% and closed at $ 932.80 an ounce while the palladium of June delivery fell 3.9% to $ 2,216 an ounce.