Gold declines after the dollar achieves gains

Thursday, May 16, 2024 - 22:13
Point Trader Group

Gold prices fell after touching earlier, on Thursday, the highest level in nearly a month, with the rise of the dollar, but cautious statements from an official in the US Federal Reserve weakened investors’ enthusiasm.

Gold fell in instant transactions by 0.4% to $2,376.37 per ounce after recording the highest level since April 19 earlier in the session, and bullion rose more than 1% on Wednesday.

US gold futures also fell 0.7% to $2,378.70.

Strategic analysts believe that gold, silver and platinum prices have an opportunity to achieve more record levels this year.

Analysts at Saxo Bank said that gold prices may soon test levels of $2,400 per ounce, while silver prices may jump to $30, with platinum reaching levels of $1,130.

John Williams, head of the US Federal Reserve in New York, welcomed the release of weaker inflation data, but told Reuters on Thursday that the positive news was not enough to call on the US central bank to lower interest rates sometime soon.

Consumer prices in the United States rose less than expected in April, which may encourage policymakers, who were waiting to see new progress on the inflation front, before reducing the cost of borrowing, and lower interest rates enhance the attractiveness of the yellow metal, which does not generate a return.

About 71% of traders expect the Federal Reserve to cut interest rates in September, according to CME Group's Fed Watch service.

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