Gold prices rose on Monday as the dollar weakened. However, the latest gains are unlikely to stave off a one-month decline for dollar-priced bullion, analysts said.
“Gold may remain nailed in narrow range around $1,850”
Spot gold rose 0.25% to $1,857.63 at time of writing. U.S. gold futures were up 0.23% at $1,861.5. Regarding the latest situation of gold, City Index senior market analyst Matt Simpson makes the following assessment:
Three days of holiday in the US, which means lower-than-normal liquidity, and a lack of high-level data until Wednesday. However, we may see gold remain nailed to its narrow range of around $1,850 unless a new catalyst arrives.
Matt Simpson: Gold’s poor performance stems from these
from a three-month low of $1,786.60 on 16 May. Gold prices are on track for a second monthly decline for the first time since March 2021, down nearly 1.9% so far. Matt Simpson comments:
Much of gold’s poor performance is due to investors turning to cash as equity markets plummet, and quarantines in China lowering demand. Typically, June is a bearish month for gold, but this seasonal pattern seems to have been shifted forward one month.
“Spot gold expected to retest resistance at $1,867”
Spot gold at $1,867, according to Reuters technical analyst Wang Tao It is expected to retest the resistance, a break above it could open up the $1,887-1,892 range. 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, as we reported
Kriptokoin.com . In the absence of data, the dollar weakened, making bullion more attractive to buyers holding other currencies.
Asian stocks trailed Wall Street higher as investors bet on an eventual slowdown in US monetary tightening after sharp gains in June and July. Higher short-term US interest rates increase the opportunity cost of holding non-yielding bullion.
