Gold prices were flat on the day with weak trades due to the US holiday on Monday. Analyst Matt Simpson says the yellow metal has remained between $1,805 and $1,880 since May 19. Therefore, the analyst states that the gold market appeals to traders rather than investors.
“Gold seeks a catalyst for new directional movement”
Spot gold is trading at $1,838.74, down 0.02% at press time. U.S. gold futures, meanwhile, were down 0.05% to last at $1,839.6. The dollar index slipped from near its highest level in nearly two decades. This, in turn, rekindled the demand for dollar-priced bullion among off-shore buyers, albeit partially. City Index senior market analyst Matt Simpson comments:
Today is a public holiday in the USA. This means that liquidity and therefore volatility will likely be lower. It therefore makes it difficult to make directional moves on gold without a new catalyst.
In the meantime, let us remind you that federal government offices, the Federal Reserve System, and the stock and bond markets in the United States will be closed on Monday for the June holiday.
“Gold traders will choose to trade between these levels”
The US Federal Reserve underlined its commitment to fight inflation last week. He showed that he would make the necessary rate hikes in this direction. Wall Street futures lost early gains amid these concerns. As a result, Asian stocks failed to sustain a rare rally. Matt Simpson shares his gold predictions on this medium:
Gold prices have effectively been in a volatile range between $1,805 and $1,880 since May 19. This makes it more of a trader market than an investor market. We think traders would prefer to buy dips above $1,800. We also predict that it will choose to sell rallies below $1,880.
SPDR Gold Trust’s holdings increase
cryptocoin.com As you can follow, the US CPI data has reached historical highs with 8.6. The Federal Reserve’s response to this was also historic. The Fed dropped a note to history by raising the Fed Funds Rate by 75 basis points last Wednesday. Reinforcing its hawkish outlook, the Fed hit the markets hard. Gold finished the week lower as well, after a stronger dollar and major central banks hiked interest rates. The decrease in the attractiveness of non-interest-bearing bullion also has an important effect on this.
SPDR Gold Trust is the world’s largest gold-backed exchange-traded fund. While gold faced headwinds, SPDR said its holdings rose 1.1% to 1,075.54 tons on Friday, from 1,063.94 tons on Thursday. This is an important indicator as it shows that investors do not give up gold easily.
