Gold price today: Gold fell to 6-month lows – Is this the gold opportunity that smart investors have been waiting for? How to say check the numbers
Why does the rising US dollar lower the price of gold?
The dollar gained this week, with the dollar index climbing to 0.4%. This is important because gold is priced in USD, so when green enhancement is enhanced, it becomes more expensive for investors who use other currencies to buy gold. This often leads to lower global demand.
This direct relationship between the dollar and gold usually causes gold prices to fall when the dollar strengthens, and that’s exactly what we’ve seen this week. As The World of Republic and Reuters It is pointed out that the higher dollar plays a key role in driving gold prices to lower.
US-How does China relations affect gold demand?
Surprisingly, U.S.-China trade tensions have eased, and both countries have agreed to temporarily reduce the tariffs that have been reached. This has removed market confidence, encouraged investors to take more risks, and moved funds away from bank-avoiding assets such as gold.
This development has changed investors’ behavior. When the world feels more stable, investors often put money into stocks or other return assets. As Reuters It is emphasized that this calm of trade fears has had a significant decline in gold this week.
What role has the U.S. economic data played in the decline of gold?
The latest data from April showed that U.S. inflation and retail sales were weaker than expected. Still, Fed Governor Michael Barr said the overall economy is still strong, with inflation increasingly moving towards the 2% target. But Barr also warned that uncertainty in trade policy remains. This mixed data makes the market uncertain what the Fed will do next. Currently, interest rates are expected to start to be lowered around September, which may help restore gold prices in the long term.
How do other precious metals perform when gold falls?
The tough week of gold also affects other precious metals that usually follow similar price trends:
- silver According to reports Reuters and Mint.
- platinum A ounce fell 0.5% to $984.83.
- palladium Falls were higher, losing 1.2% to $956.43 per ounce.
These metals are as sensitive to macroeconomic conditions and investor sentiment as gold, both of which have shifted significantly this week.
Will regional demand for gold be picked up after prices fall?
Interestingly, the decline in global gold prices has triggered demand in major Asian markets.
In India, dealers responded that it offers up to $34 per ounce discounts compared to the official domestic price – a huge discount compared to the $16 last week. The current domestic gold price in India is about Rs 92,900 per 10 grams, down sharply from Rs 99,358 in April, Reuters Report. This is something some buyers attract, although many are still waiting to see if prices will fall further.
In China, gold premiums exceeding spot prices range from $9 to $50 per ounce, slightly lower than the previous week. Even so, analysts say the decline attracts bargaining hunters, suggesting that lower prices can still stimulate demand in important markets.
What is the prospect of gold moving forward?
It’s been a tough week for gold, but analysts don’t think it’s the end of the road. Investor interest in gold often grows in uncertain times, and as inflation remains a concern and potential lower interest rates, many expect prices to stabilize and even rise again later this year.
All in all, gold prices fell this week – down 3.3% to $3,213.56 per ounce – driven by a combination of macroeconomic forces: a dollar of dollars that eases U.S.-China tensions, and economic signals from the U.S., but conflicting with global uncertainty and far from global uncertainty, gold may still find its pace in previous months.
FAQ:
Question 1: Why did gold prices fall this week?
Gold prices fell, mainly because the dollar is stronger and trade tensions are easing.
Question 2: What is the current price of gold per ounce?
As of Friday, spot gold was $3,213.56 per ounce.
