World gold price falls to two-week low

World gold price dropped sharply in the session of June 26

At the end of the trading session on June 26, the world spot gold price fell 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 US Federal Reserve (Fed) will not cut interest rates in the summer," said Bart Melek, commodity strategist at TD Securities.

The dollar index rose 0.4% yesterday to a nearly two-month high against other major currencies, making gold expensive for buyers outside the US. The yield on the 10-year US 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, which helps investors predict the agency's interest rate decision.

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

On June 25, Fed Board of Governors member Michelle Bowman said that keeping interest rates steady “for a while longer” would help control inflation better. He even affirmed his readiness to raise interest rates if necessary. Higher interest rates would make gold less attractive.

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

TH (according to VnExpress)

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