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Home Commodities Gold price today: Gold falls to its lowest in over a week on hawkish Fed and US indicators

Gold price today: Gold falls to its lowest in over a week on hawkish Fed and US indicators

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Gold fell to its lowest level in more than a week on Thursday, widening its decline for a third straight session, as investors grew concerned about the timing of U.S. interest rate cuts and the strength of U.S. business activity.

Spot gold was down 1.4 percent at $2,346.07 an ounce as of 1557 GMT, its lowest since May 14.

Non-yielding gold hit a record high of $2,449.89 on Monday and is up 14% so far this year.

The dollar pared the day’s losses as gold became less appealing and U.S. business activity accelerated to the highest level in more than two years in May, suggesting that economic growth had accelerated by the middle of the second quarter.

Daniel Ghaly, commodity strategist at TD Securities, said a stronger dollar and weakening prospects for a U.S. rate cut prompted profit-taking in gold, but the downside is likely to be limited. Immediate policy responses include “holding” interest rates at current levels, although the latest Fed minutes reflected discussion of a possible rate hike. “Investors who are concerned about the Fed’s outlook are not actually holding gold for that long. They missed the rally and don’t have as much gold to sell on the other side. So we think gold prices are signaling a correction here, but it’s going to be relatively shallow,” Ghaly said. UBS raised its gold price forecast for the end of 2024 to $2,600 an ounce, citing a set of weak U.S. economic data in April, upward revisions to central bank gold demand, and ongoing geopolitical uncertainty, and recommended buying on dips below around $2,300/ounce.

Meanwhile, according to an industry group, imports into India, the world’s second-largest consumer of gold, will drop by 5% by 2024 as retail consumers tend to replace old jewelry with new items due to soaring prices. It is said that there is a possibility that it will decrease by nearly 1.

Spot silver fell 1% to $30.45. Recent gains in gold and copper prices pushed the metal to an 11-year high of $32.5 earlier this week.

Platinum fell 0.7% to $1,028.15 and palladium dropped 2.5% to $974.72.

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