- Write by:
-
Friday, May 22, 2020 - 4:51:23 PM
-
503 Visit
-
Print
Mining News Pro - Gold price is drifting away from a near seven-year high, heading for its first loss in three sessions on Thursday, as the US dollar strengthened and hopes of a quick economic recovery put more selling pressure on the metal.
Spot gold fell 1.5% to $1,722.98 an ounce at noon New York time. Earlier, the gold price slipped to $1,717.69 an ounce, its lowest over a seven-day period.
Gold futures for June delivery on the Comex also declined 1.7% to $1,722.60, which is lower than the spot price.
“Gold seems to have lost a little momentum since breaking above $1,750 and the rise in the dollar today doesn’t seem to be helping,” OANDA analyst Craig Erlam said in an interview with CNBC.
“However, the enormous amount of monetary stimulus in the system, the need for that to continue for some time and the inflation risk are all bullish for gold in the longer term,” Erlam added.
On Wednesday, minutes from the US Federal Reserve’s April meeting were released, which highlighted key risks emerging throughout the economy as lockdowns pushed forward. The Fed also acknowledged the possibility of further support measures if the economic downturn persists.
However, concurrent with concerns of a second wave of coronavirus outbreak later this year, policymakers noted there could a renewed downward pressure on inflation, which would not bode well for gold as it thrives during periods of inflation.
Meanwhile in other precious metals, palladium dropped 3.4% to $2,029.50 an ounce after reaching a one-month high earlier this week. Platinum dropped 1.8% to $830.25, while silver dipped 2.9% to $17.06.
Short Link:
https://www.miningnews.ir/En/News/534300
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
Interros, Nornickel’s largest shareholder, on Monday called allegations by fellow shareholder Rusal about undervalued ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
No comments have been posted yet ...