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The ‘jump’ of the dollar pushed gold to a two-month low

The new rise of the dollar exhausted yesterday’s dynamics of gold, pushing the precious metal to close at the two-month low.

Gold has failed to draw support even from Moscow’s decision to cut off gas supplies to Poland and Bulgaria, which is escalating tensions between the West and Russia, leading to a new rise in energy prices in Europe and intensifying them. fears of worsening energy supply disruptions.

The ICE US Dollar index has climbed to levels it had seen since 2017, “undermining” the attractiveness of gold, making it more expensive for holders of other currencies.

The rise of the dollar is fueled by estimates that the Federal Reserve will move more aggressively in the coming period both in terms of raising interest rates and tightening its monetary policy in general, in order to “slow down” the galloping inflation that moves to four decades high. .

“Gold’s failure to hold $ 1,900” even with the Ukraine-Russia war providing a clear reason to invest in absolute ‘shelter’ demonstrates how catalytic ‘buying’ the Federal Reserve’s action is, “he said. Robert Rowling, market analyst at Kinesis Money, reports.

“With interest rates from the US Federal Reserve set for May and June and possibly July, the fact that gold is not yielding has made it unattractive to investors,” Rowling said. explaining that it facilitated the sharp fall of the metal below $ 1,900 an ounce while a month ago it was above $ 2,000.

Thus, on Wednesday, the June contract for gold fell by $ 15.40 or 0.8% and closed at $ 1,888.70, which is the lowest closing for the most active contract since February 25, according to its data. FactSet.

Silver also fell on Wednesday, with the May delivery contract falling 8 cents, or 0.3%, and closing at $ 23.46 an ounce.

For the rest of the metals, copper for July delivery rose 0.2% to close at $ 4.475 a pound, the June contract for palladium rose 0.8% to $ 2,195.10 an ounce, while platinum for July delivery closed at $ $ 910.40 an ounce, with losses of 0.2%.

Source: Capital

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