Gold Falls Sharply, Will the Pressure Continue?
Gold prices fell again on Tuesday (June 30th), approaching an eight-month low. Selling pressure intensified as the market worried that US inflation would remain stubbornly low and could prompt the Federal Reserve to raise interest rates again this year.
Spot gold fell 1.3% to US$3,965.51 per troy ounce, while gold futures weakened 1.5% to US$3,975.92 per troy ounce. Spot prices are now at their weakest level since early November. Throughout June, gold has fallen 12.8%, its worst monthly decline since 2008.
The main pressure comes from the strengthening US dollar and expectations that the Fed will continue to take a hawkish stance. At the June meeting, several US central bank officials signaled that interest rate hikes are still possible. This situation further pressured gold because the precious metal does not provide an unbalanced return.
Inflation concerns are also fueled by energy prices and rising technology costs. Although energy prices fell following the US-Iran peace deal, the market remains concerned about Middle East risks after military tensions resurfaced over the weekend. Meanwhile, rising Apple device prices due to expensive chips have heightened concerns about AI-driven inflation, as the artificial intelligence industry consumes a significant portion of the global chip supply.
Other precious metals also weakened sharply. Spot silver fell 2% to US$57.10 per troy ounce and has fallen 24.2% so far this month. Platinum weakened 1.3% to US$1,563.25 per troy ounce, down nearly 19% in June. This indicates that pressure is not limited to gold but is spreading across the precious metals market as a whole. (asd)*
Source: Newsmaker.id
