Spot Gold Price Going To Lowest Drop
On May 16, the spot gold price faced its third session decline. The fall happened due to the announcement of a strong dollar after the report of robust economic data from the United States. Aside from that, the progressive global stocks is also a reason.
Spot gold is $1,288.03 per ounce, dropping 0.7%. Since April 16, this has been the lowest price it declined.
On the other hand, US gold futures dropped, 0.8% to $1,287.82 an ounce.
Director of metals trading at High Ridge Futures, David Meger stated, “Firmer dollar is putting pressure on gold.” Moreover, gold is experiencing a technical pullback.
Then, Meger also added, “Equity markets continuing to bounce off from the recent lows is taking away some safe-haven bids.”
For almost two weeks, the dollar index surged to its highest level against a basket of major currencies.
In April, the US housing data released an improvement more than expected in the homebuilding. Contrarily, unemployment benefits dropped more than expected last week. The fall was due to sustained labor strength that should underpin the economy.
The surging U.S. data connect with positive corporate earnings boosted Wall Street and risk sentiment among investors. As a result, it scraped the appeal for the safe-haven bullion.
According to an analyst, the $1,300 barrier confirmed the significant pivot for bullion.
Senior analyst at Kitco, Jim Wyckoff noted, “Gold bulls and bears are on a level overall near-term technical playing field.”
Then Wyckoff said that initial resistance is seen at $1,300 and then at this week’s high of $1,304.20.
Silver Slipped on Low Demand
In futures trade Thursday, price of silver fell 0.07 percent to Rs 37,490 per kg. While the domestic market showed weak cues.
Meanwhile, delivery of silver in July contracts dipped by Rs 27 or 0.07 percent on the Multi Commodity Exchange. The precious metal is now trading at Rs 37,490 per kg in a business turnover of 22,198 lots.
On the other hand, the white metal’s September contract for delivery declined 0.11 percent or Rs 11. It is trading at Rs 38,015 per kg in a business turnover of 958 lots.
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