On Thursday, gold prices dropped to their lowest level in a week, continuing to decline for the third consecutive session due to profit-taking. This happened after the publication of the minutes of the last meeting of the US Federal Reserve, which suggests that interest rates may remain elevated for a long time. Writes UNN with reference to Reuters.
The price of spot gold fell 0.9% to $2356.29 an ounce, touching its lowest level since May 14 at the start of the session at $2351. At the beginning of the week, gold bullion set a record of $2449.89 and is up 14% since the beginning of the year.
The market was also worried about the impact of high gold prices on purchases by central banks, which actively bought gold in 2022-2023, as well as on demand from Chinese investors.
We expect them to continue active purchases in the event of any price decline, and we do not expect the decline in gold prices to be significant
Gold may meet the next level of support at $2,300, and signals of a possible interest rate cut from the Federal Reserve could be a key factor for further price growth, the expert said.
Meanwhile, gold imports to India, the world's second-largest gold consumer, are expected to decline by nearly 20% in 2024 due to high prices that encourage consumers to hand in old jewelry in exchange for new ones, according to an industry body.
Spot silver fell 0.6% to $30.57. The recent rise in gold and copper prices earlier this week brought the price to $32.5, the highest in 11 years.
Platinum is down 0.2% to $1,033.44. The price of the metal is up 11% this month after forecasts of a second consecutive year of structural market deficit.
Recall
Spot gold was already showing an increase in price, but US gold futures declined.