The value of Gold has fallen across the board following a series of meetings by the US Federal Reserve System (US Central Bank) for clarity on their rate-hike strategies in early May.
Spot gold was down 0.1 percent at U$1,980.89 per ounce. US gold futures were flat at U$1,990.20.
The dollar firmed 0.1 percent, increasing golds cost for buyers holding other currencies.
In other precious metals, spot silver slipped 0.3 percent to U$24.95 per ounce.
Platinum shed 2.1 percent to U$1,100.45 and palladium dropped 1.1 percent to U$1,583.94.
Meanwhile, analysts at TD Securities note that Strong data suggests more gold downside.
“This forced rates up across the curve, which drove the US Dollar sharply higher. It seems we are seeing USD shorts being covered, after specs increased positions amid expectations of a Fed dovish pivot. Similarly, in the gold market, money managers are also likely increasing recently reduced shorts and are cutting acquired longs,” they said.
“With the preliminary US Services PMI and potentially other economic data pointing to continued economic strength, the market is starting to bet that rates may continue to increase. As such, there is additional room for gold to drop further. Indeed, we are projecting a U$1,975/oz gold price in Q2. Technically, we see significant support at just above U$1,960/oz. However, we see the yellow metal trend at U$2,100/oz in late H2-2023.”
“Traders should keep an eye on data during the Fed’s quiet period. Strong data suggests more gold downside, while weakness implies strength for the yellow metal.”
