Low flights for gold

Gold ended its trading session with a marginal rise, as the strengthening of the dollar seems to “strangle” the demand for the precious metal.

In particular, the June gold contract closed at $ 1,891.3 an ounce, with its price rising slightly by 0.1% or $ 2.6.

It is worth noting that intra-conference had fallen as low as $ 1,870, to a low of more than two months since mid-February. However, in the process, it reaped the losses, mainly after the unexpected decrease of the US GDP by 1.4% for the first time since the outbreak of the pandemic, at the time when the estimates spoke of an increase of 1%.

According to Brian Lan, CEO of GoldSilver Central, gold was comfortably held above $ 1,900, but was under pressure from the dollar and the Fed’s critical factor, which is expected to raise interest rates by 50 basis points next week.

The DXY dollar index (against a basket of international exchange rates) has been at a high of five years and if it exceeds 103.82 it will see levels that have been appearing since 2002.

It is recalled that the strong dollar makes gold a less attractive investment for holders of other exchange rates.

With gold prices failing to rise further, despite the backdrop of the war in Ukraine and rapid inflation, investors have probably decided to look elsewhere, said Brian Lan. He added that lockdowns in China have also affected demand for one of the world’s leading consumers.

On the other metals, silver came under significant pressure and was moving at a loss of 1.5% to $ 23.16 an ounce.