Gold Drops, Gaining More Than A Three-Month Low

Gold Drops, Gaining More Than A Three-Month Low

Gold Drops, Gaining More Than A Three-Month Low

On Monday morning in Asia, gold was down, having risen from a nearly three-month low set the previous day. Lower Treasury yields in the United States kept gold demand above $1,800.

Futures for gold fell 0.07 percent. The yellow metal declined more than 1% this week, marking its fourth straight weekly loss. The update of the Reserve Bank of Australia’s most recent meeting is being awaited by investors.

The dollar, which usually goes in the opposite direction of gold, fell somewhat on Monday, although it was still close to a 20-year high. Concerns about the economy caused investors to flock to the safe-haven dollar.

Benchmark Treasury yields in the US have fallen, and inflation must continue to fall for several months before US Federal Reserve policymakers may reasonably say it has peaked.

The update of the Reserve Bank of Australia’s most recent meeting is being awaited by investors. Silver fell 0.1 percent, while platinum remained constant at $938.5.

Oil prices dipped on Monday as fears of a worldwide recession were fueled by widespread Chinese lockdowns and bad economic data, yet the market received some assistance as the European Union moved closer to an import embargo on Russian petroleum.

The average output of Russian oil and gas condensate climbed by roughly 1.7 percent month over month to 1.4 million tonnes per day.

Despite concerns over supplies in eastern Europe, oil prices received some support as European Union diplomats and officials indicated hope about achieving an agreement on a phased suspension of Russian oil. 

The price of Brent crude was down 0.3 percent. The drop in oil prices is primarily due to dismal Chinese economic figures, as the lockdown actions are affecting the world’s second-largest market directly.

Retail sales in China decreased nearly 11% year over year in April, according to new figures, while factory output fell 3%.

Meanwhile, on Monday, U.S. gasoline futures hit a new high as declining stockpiles fueled supply fears. Austria anticipates an agreement on sanctions from the EU in the next few days.

China refined 11% less crude oil in line with the unexpected drop in industrial output.

More at: FXlearnpro.com

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