gold futuresIt closed lower on Friday (14th), falling across the board after hitting a record high the previous day, as investors weighed expectations that the Federal Reserve (Fed) may soon stop raising interest rates.
- New York for June deliverygold futuresPrices fell $39.50, or 1.9 percent, to $2,015.80 an ounce, the most recent month on the week.gold futuresPrices fell 0.5%.
According to Andrew Schrage, CEO of Money Crashers,gold futuresFriday’s action suggests that it has become overbought in the near term.
Junegold futuresPrices closed at $2,055.30 an ounce on Thursday, the highest since Aug. 6, 2020 (it closed at an all-time high of $2,069.40 on the day), as the U.S. dollar weakened, U.S. economic data weakened, and the Federal Reserve (Fed) did not rise. The chances of interest rates, coupled with the possibility of a mild economic recession, prompted investors to seek hedging, boosting demand for precious metals.
According to Schrage,goldFor any record to be broken, it would have to be confirmed that the Fed has finished raising interest rates. “The market is embracing the idea, but there is still a lot of uncertainty.”
Peter Spina, president of GoldSeek.com, said central bank buyinggolddeepening weakness in the U.S. as the economy headed toward recession but inflation persisted, a historic geopolitical shift that threatened to displace the U.S. dollar as the world’s reserve currency, and a host of unknown risks stemming from higher interest rates. are beneficialgold。
Spina says it’s hard to say at the momentgoldAlready ready to break out to new highs in the next few days, it’s also hard to be suregoldIf it spends weeks consolidating below all-time highs, it’s headed higher again. “The market is in short-term overbought conditions.”
Still, with the prospect of rate hikes over, inflation yet to fall to the 2% target, and the economy looking set to enter a contractionary phase, a stagflation scenario appears to be playing out, “this isgoldThe most bullish scenario, with negative real rates and few sectors seeing any growth. “
Traders have been watching U.S. economic data for signs of a slowdown that could lead to a pause or end to the Fed’s drive to curb inflation by raising interest rates.
Spina sets an initial upside target, once gold hits an all-time high of $2,300 to $2,500, Western buyers will join in and buy along with the rest of the worldgoldthe price of gold may rise as high as $2,700.
Economic data released on Friday showed that U.S. retail sales fell more than expected by a larger-than-expected 1% in March. However, US industrial production rose 0.4% in March, higher than Wall Street’s expectations for a 0.2% increase.
Meanwhile, the University of Michigan’s consumer sentiment index edged up to 63.5 in April from 62 the previous month.
Lukman Otunuga, market analysis manager at FXTM, said: “While gold prices slipped slightly on disappointing U.S. retail sales data, fueling recession fears, the outlook remains bullish – especially as the market still expects the Fed to cut interest rates in the summer .”
Comex Metals Commodity Trading
- delivered in MaySilver futuresThey fell 46 cents, or 1.8%, to $25.46 an ounce, having finished the week up 1.5%.
- delivered in Maycopper futuresThey were down 2 cents, or 0.4%, at $4.11 a pound, having gained 2.3% for the week.
- delivered in julyPlatinum FuturesIt was down $11.50, or 1.1%, at $1,054 an ounce, up 3.7% for the week.
- delivered in JunePalladium FuturesThey gained 70 cents, or nearly 0.1%, to settle at $1,496.30 an ounce, up 2.3% for the week.
