Investing.com – Gold prices fell near key levels in Asian markets today. This is due to a reduction in demand for safe assets. and the trend of higher US interest rates for a long time
Gold prices have fallen significantly 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 drop in demand for the safe haven gold asset.
Weak demand makes gold more vulnerable to pressure from US interest rates. This is because higher interest rates in the long term increase the opportunity cost of investing in gold.
0.1% to $2,313.62 an ounce, while those due in June were down 0.6% to $2,325.05 an 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 lead to more short-term losses for gold.
But gold’s further movement is expected to be driven by economic signals and US interest rates. that is about to happen
US first-quarter data on Thursday is expected to show whether the world’s largest economy is still recovering well in early 2024.
US inflation figures 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 fell on the day, down 0.3% to $910.30 an ounce, while down 1% to $27.078 an ounce.
Copper slips of 2 years height
Among industrial metals Copper prices fell further from two-year highs on weak economic reports and fears that high interest rates would offset sentiment for a tighter market.
The London Metal Exchange index edged up 0.2% to $9,773.0 a tonne, while down 0.1% to $4.4510 a pound Both indexes rose near two-year highs in early April. After Western sanctions on Russian metal exports Pointing to a tighter market
But sentiment was overshadowed by top copper producer Chile as Coldeco signals it would increase output in 2024.
Concerns about demand are also creating pressure. After weaker than expected US PMI data in April, returning to contraction territory.
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