Gold Prices Are Falling on Global Markets: The Main Reasons
28 July 14:38
Gold prices are falling on Tuesday, July 28, under pressure from a stronger dollar: investors are awaiting the outcome of the Fed’s two-day meeting this week, hoping to gain clues about the future path of interest rates. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold fell 0.8% to $4,042.64 per troy ounce.
“Gold has been trading within a very narrow range since the end of June, finding support around $4,000, which suggests a breakout is coming at some point,” said Rona O’Connell of StoneX.
“Fundamentally, the physical market remains very quiet, while professional market participants are trying to make sense of the interplay between oil, interest rates, and the dollar, which are key drivers,” O’Connell added.
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U.S. President Donald Trump said on Monday that Washington is having good talks with Iran and that there is a chance for a resolution to the conflict, but he warned that if the talks fail, the U.S. will resume strikes.
Oil prices continued to fall on Tuesday, hovering near a one-week low amid hopes for a resolution to the conflict. At the same time, Trump called on the Federal Reserve to lower borrowing costs, adding that U.S. interest rates should be the lowest in the world.
About 34% of market participants expect a 25-basis-point rate hike at the July meeting, according to the CME FedWatch Tool. In addition, traders are pricing in a 79% probability of a rate hike in September.
Palladium fell 1.8% to $1,268.25 per ounce, while silver dropped 1.45% to $57.56 per ounce.
The price of platinum fell 0.68% to $1,610.25.
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