Gold slides below $1,800 an ounce after biggest weekly fall in 11 months

Gold futures remained under pressure to start the week, below the $ 1,800 an ounce threshold on Monday.

Gold for June delivery GC00,

it fell $ 9.50, or 0.5%, to $ 1,798.70 on Comex, after falling below $ 1,800 in Friday’s session, when it closed at its lowest level since February 4th. Gold fell 3.9% last week, the highest since June 18, 2021, according to Dow Jones Market data.

July silver SIN22,
+ 0.97%
rose 0.4% to $ 21,095 an ounce after falling 6.2% last week, its biggest drop since late January.

Gold “has fallen victim to the strength of the US dollar and rising bond yields, making this interest-free commodity less attractive to performance seekers. Its performance has surprised many market, including us, “Fawad Razaqzada, market analyst at City Index and, said in a statement.

Gold fell from its session low on Monday as the US dollar fell from early highs. ICE US Dollar DXY Index
rose 0.1% after trading on Friday near the 20-year high. A stronger dollar can be negative for commodity-priced commodities, making them more expensive for users of other currencies.

Rising bond yields have also been a brake on gold. Treasury yields early last week traded near a three-and-a-half-year high before falling.

The weakness of gold, however, has come as a surprise given the persistent inflation readings, as well as the volatility observed in the stock and crypto markets, which would have been expected to stimulate some demand for gold. with the shelters, Razaqzada said.

“Those looking to protect their wealth eroded by inflation should be equally surprised to see the metal trade around $ 1,800,” he wrote.

“While I’m basically still positive for gold, I just need to look at a technical investment pattern to confirm that prices have bottomed out. One of those scenarios would be if gold recovers the broken trend line and returns to above the $ 1850 resistance, “he said. “But the first one is the first one: he will have to defend the support around $ 1800.”

In the trade of other metals, July copper HGN22,
+ 0.23%
it rose 0.2% to $ 4.182 a pound.

platinum July 22 PLN,
fell 1.4% to $ 917.40 an ounce, while the June palladium PAM22,
it was down 0.7% to $ 1,904 an ounce.

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