Investing.com – Gold prices fell near key levels in Asian markets today. This is due to decreased demand for safe assets. and the US interest rate trend higher for a long time
Gold prices have fallen sharply from record highs over the past week. This is because the conflict between Iran and Israel has not escalated. This has led to a sharp decline in demand for the safe haven asset of gold.
Weak demand makes gold more vulnerable to pressure from US interest rates. This is because higher interest rates in the long term drive up the opportunity cost of investing in gold.
0.1% to $2,313.62 per ounce, while those due in June were down 0.6% to $2,325.05 per ounce at 00:26 ET (04:26 GMT).
Gold tests support at 2,300 ahead of further interest rate signals.
Spot prices are now close to breaking the support level of $2,300 per ounce. This could result in larger short-term losses for gold.
But gold’s further move is expected to be driven by economic signals and US interest rates. that is about to happen
First quarter US data on Thursday It is expected to show whether the world’s largest economy is still recovering well in early 2024.
US inflation numbers Hotter-than-expected prices and hawkish signals from the Fed have led most traders to lower their expectations for a June rate cut. This is a situation that creates short-term pressure on gold prices.
Other precious metals also dropped on the day, down 0.3% to $910.30 an ounce, while down 1% to $27.078 an ounce.
Copper slips from 2-year high
Among industrial metals Copper prices fell further from two-year highs on weak economic reports and fears that high interest rates would offset sentiment about a tighter market.
The London Metal Exchange index edged down 0.2% to $9,773.0 a tonne, while down 0.1% to $4.4510 a pound. Both indexes surged close to two-year highs in early April. After Western sanctions on Russian metal exports Points to a tighter market
But sentiment was overshadowed by top copper producer Chile signaling Coldeco would increase output in 2024.
Concerns about demand are also creating pressure. After the US PMI data was weaker than expected in April, returning to contraction territory.
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