World gold price falls to two-week low

World gold price dropped sharply in session 26/6

At the end of the trading session on June 26, the world spot gold price decreased by nearly 22 USD, down to 2,297 USD per ounce. This is the lowest level since the session on June 10.

Analysts said the market fell due to a stronger USD, rising US government bond yields and investors waiting for US inflation data to be released this week.

"At this point, the market is probably just reacting to the strong greenback. We are still betting on the possibility that the Federal Reserve will not cut interest rates in the summer," said Bart Melek, commodity strategist at TD Securities.

The dollar index rose 0.4% to a nearly two-month high against a basket of major currencies yesterday, making gold more expensive for non-U.S. buyers. The yield on the 10-year U.S. government bond also hit a new two-week high.

This week, the US will release the Personal Expenditures Price Index (PCE), the Fed's preferred inflation measure that helps investors predict the agency's interest rate decision.

Markets are also looking ahead to the first quarter GDP estimate and the first presidential debate between President Joe Biden and Donald Trump later today. Earlier this week, data showed that American consumer confidence fell in June amid concerns about the economic outlook. Still, households remained upbeat about the labor market and forecast lower inflation next year.

On June 25, Fed Governor Michelle Bowman said that keeping interest rates steady “for a while longer” would help control inflation better. He even affirmed that he was ready to raise rates if necessary. Higher interest rates would make gold less attractive.

In the precious metals market, spot silver prices fell 0.1% to $28.8 an ounce yesterday. Palladium lost 2% to $929. Platinum fell 3% to close at $1,011.

TH (according to VnExpress)

Source: https://baohaiduong.vn/gia-vang-the-gioi-xuong-thap-nhat-hai-tuan-385721.html