Gold prices rose on Monday as the U.S.
dollar weakened, but recent gains are unlikely to stave off
another monthly fall for greenback-priced bullion.
Spot gold was up 0.4% at $1,860.77 per ounce, as of
0451 GMT. U.S. gold futures also climbed 0.4% to
“With the three-day holiday in the United States, which
means lower liquidity than usual, and a lack of top-tier data
until Wednesday, we may find that gold will remain nailed to its
tight range around $1,850 unless a new catalyst arrives,” City
Index senior market analyst Matt Simpson said.
Federal government offices, stock and bond markets, and the
Federal Reserve will be closed on Monday for the Memorial Day
holiday in the United States.
The dollar eased, making bullion more attractive for
buyers holding other currencies.
Despite a mostly positive showing since hitting an over
three-month low of $1,786.60 per ounce on May 16, gold prices
are on course for a second straight monthly fall for the first
time since March 2021, down about 1.9% so far.
“A large part of gold’s underperformance has been due to
investors moving to cash as equity markets fell, while lockdowns
in China also dented demand. Typically, June is a bearish month
for gold but that seasonal pattern appears to have been shifted
forward by one month,” Simpson said.
Asian equities followed Wall Street higher, as investors
wagered on an eventual slowdown in U.S. monetary tightening,
albeit after sharp hikes in June and July.
Higher short-term U.S. interest rates raise the opportunity
cost of holding non-yielding bullion.
Spot gold is expected to retest a resistance at $1,867 per
ounce, a break above could lead to a gain into $1,887-$1,892
range, according to Reuters’ technical analyst Wang Tao.
Spot silver rose 0.5% to $22.22 per ounce, platinum
firmed 0.4% to $957.58, and palladium gained 0.9%
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Sherry Jacob-Phillips, Rashmi Aich and Uttaresh.V)
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