Gold Prices Have Fallen: The Main Reasons
6 July 18:16
Gold prices, which had reached a two-week high, fell on Monday, July 6, as the dollar strengthened ahead of this week’s release of the minutes from the Federal Reserve’s June meeting. This was reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold fell 0.64% to $4,148.49 per troy ounce, having touched a high of $4,202.13—its highest level since June 22—during the session.
At the same time, the dollar index against a basket of six major currencies rose by 0.19% to -101.07, making the precious metal—denominated in dollars—more expensive for holders of other currencies. According to Ule Hansen of Saxo Bank, the precious metal is in a consolidation phase after rising more than 2% last week and ending a four-week decline. Weaker-than-expected U.S. jobs data has dampened expectations of further monetary tightening in the United States.
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For gold to gain support, these expectations need to weaken further, Hansen said.
“There are attempts to form a support base in the $3,900–$4,000, and a whole set of resistance levels awaits investors on the way to the most important one—the 200-day moving average at $4,485,” Hansen said.
The minutes from the Fed’s June meeting, which took place on June 16–17, will be released on Wednesday and may give traders additional clues about central bank officials’ outlook on interest rates.
J.P. Morgan said in a note published on Friday that demand for gold from key sectors will not be as strong as expected: prices will be capped at $4,300 per ounce in the third quarter and $4,500 in the fourth quarter of 2026.
Silver fell 0.63% to $62.01, having touched its highest level since June 23 during trading.
Palladium rose 0.12% to $1,275.25, while the price of an ounce of platinum remained stable at $1,638.56.
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