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Gold prices steady below $2,400; Rate fears, dollar pressure persist By Investing.com – Investing.com

Investing.com — Gold prices recovered from overnight declines in Asian trade on Thursday, but remain below recent highs as concerns about longer-term interest rates and strong dollar pressure remain. Ta.

The yellow metal soared to record highs last week as safe-haven demand soared after Iran launched attacks against Israel. But fears of an escalation of the conflict subsided somewhat this week after Israel did not immediately retaliate for the attack.

Pressure on the greenback also eased slightly this week after the currency fell from a five-month high on Wednesday. However, with interest rates expected to remain high for an extended period of time, gold could hardly take advantage of this weakness.

By 00:21 ET (04:21 GMT), it rose 0.6% to $2,374.31 an ounce, while June expiry rose slightly to $2,389.05 an ounce. Spot prices fell 0.9% on Wednesday, with some profit-taking after surging to a record high of more than $2,340 an ounce last week.

Gold is showing signs of profit taking, but is close to exiting overbought territory

This week saw significant profit-taking after gold hit a new all-time high, especially as the Iran-Israel conflict does not seem to be escalating any time soon and some risk appetite has returned to the market.

Spot prices remain in overbought territory, the 14-day Relative Strength Index showed. However, the indicator is returning to neutral territory below 70 points, a scenario that could prompt further gains for gold in the short term.

Still, with U.S. interest rates rising for an extended period of time, further gains in gold remain questionable. Strong inflation data and hawkish signals from the U.S. Federal Reserve have traders mostly pricing in the central bank’s expectations for a June interest rate cut.

Other precious metals also saw some weakness this week, but were mixed on Thursday. It fell 0.3% to $949.60 an ounce, while it rose 0.2% to $28.465 an ounce.

Copper and aluminum rise as dollar weakens

Industrial metals prices rose to recent highs on Thursday, benefiting from a weaker dollar and on expectations that the resilience of the U.S. economy will support metals demand.

On the London Metal Exchange, the metal rose 0.4% to $9,591 a tonne, close to a two-year high, while it rose 0.5% to $4.3623 a tonne, also a two-year high. maintained a level close to that of

It rose 0.6% to $2,589.0 per ton.

Prices for industrial metals have soared in recent weeks on expectations of tighter supplies after the United States and its allies imposed tougher sanctions on Russian metal exports.

Signs that several major Chinese smelters will cut production also pushed up copper prices.

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