BENGALURU: As investors awaited US inflation statistics for hints on the future direction of interest rates, gold dropped more than 1 percent on Friday to its lowest level in over a month as trade and geopolitical concerns eased. By 1:55 p.m. Saudi time, spot gold had dropped 1.4 percent to $3,282.68 an ounce, the lowest level since late May. Prices have dropped more than $200 from a record high set in April and more than 2% this week.
The price of US gold futures dropped 1.6% to $3,294.50. US President Donald Trump mediated an Iran-Israel truce earlier this week, and it is currently in effect. The United States and China have achieved a consensus on how to speed up supplies of rare earths to the United States, according to a White House official on Thursday. As countries scramble to reach an agreement, Trump’s “reciprocal” tariffs are set to expire on July 9.
“Gold has not benefited at all from the recent leg down in the dollar due to the loss of haven demand,” stated Fawad Razaqzada, market analyst at City Index and FOREX.com. “It wouldn’t be too bad if there was a slight pullback because that would give the metal time to recover from long-term technical overbought conditions on longer time frames and shine again when macro conditions are more favourable.”
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