Dollar Rise Might Keep Gold Under Pressure in Short to Medium Term

Dollar Rise Might Keep Gold Under Pressure in Short to Medium Term

gold technical analysis

U.S gold futures price fell 0.57% to 1626.90 on Wednesday.

Gold prices tumbled on Wednesday in the international market as the dollar surged after Federal Reserve officials reiterated the US central bank to maintain an invasive policy.

Spot gold was down 0.57% to $ 1626.81 per ounce as of 0132 GMT

Gold futures were down 0.57% to $1626.35 an ounce while Spot gold was down 0.57% to $1626.70 an ounce by 0132 GMT. Both instruments were down over the past few sessions, as the dollar surged.

On Tuesday greenback was down, the dollar index losing 0.1% after five consecutive days of losses. An amalgamate of profit taking, and anticipation of showing U.S inflation gains on the greenback in recent sessions.

But markets expect the Fed to keep raising interest rates at a high, given that inflation remains above the central bank’s annual rate of 2%.

On Monday London traded copper futures jumped 1.9%, and rose 0.2% at $3.6242 a pound. China is the largest importer of red metal but copper must contend with slow demand in China.

Gold has nosedived from highs hit earlier this year, as investors get better returns from the dollar and sovereign debt.

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