The price of gold in the US took less than 1% fall last Friday as the US dollar witnessed a rise. The unexpected dip of gold allowed investors to take profits as the price for the valuable item managed to breach $1.450 million, which is the highest peak in six years. The price for gold dove following signals from the US Federal Reserve, but remains on course for gains next week.
Gold went down by 1.65% staying at $1,422.2, which is after touching its highest amount at $1,45.60. The amount continued to soar from May 2013 until its recent slip. In the past two days, the price for gold went up by almost 3%, totaling the week growth to 1.2%. The Federal Reserve’s plan to hike interest rates during its end-of-the-month discussion may still affect the week result.
Meanwhile, US gold futures dropped by 0.32% with a total price tag of $1,423.5. US Global Investors head trader Michael Matousek reveals gold always get under pressure to do better when the US dollar is doing well. Matousek also states that the gains that gold got for the past two days are encouraging traders and speculators to take their profits.
The dollar overcame other currencies as it rose by about 0.3%. The spike by the US dollar managed to help it recover from a sharp decline caused by Fed policymakers’ dovish comments. John Williams, the New York Fed President, states that politicians will continue to add stimulus until an economic disaster happens.
Richard Clarida, Fed Vice Chairman, revealed in an interview that policymakers might have to consider immediate actions to help stimulate the economy of the US to avoid risks as an insurance policy. Policymakers might need to lower interest rates to help boost gold’s price. The new standards may provide better interest and balance the competition between gold and the dollar. Jonathan Butler, an analyst from Mitsubishi, shares that gold remains in a supportive environment. Gold continues to do good because of the troubling war between the US and China in trade.
The US Navy revealed that it shot down an Iranian drone in the Gulf. However, Iran announced that its deployed drones returned safely and that there was no air attack from the US government. Matousek believes that the tensions surrounding the US will continue to bring the price of gold up. However, investors taking profit on the expected rise will not do the gold market any good.
Meanwhile, platinum stabilized at around $849 per ounce after a two-month high, while palladium witnessed its price fall to $1,507.68 at 1.2%. Silver went down to $16.23 after making its highest peak within the year.