Gold continues sinking, approaches two-month low as investors anticipate Fed policy
Gold was down in Asia on Wednesday morning and is en route to its worst monthly drop since November 2016 as it nears an over two-month low. Investors anticipate US jobs data for hints on the US Federal Reserve’s monetary policy moving forward.
Gold futures slumped 0.26% to $1,758.95 by 12:53 AM ET (4:53 AM GMT), after hitting their lowest level since April 15 on Tuesday.
The safe-haven asset was also down 7.5% for June, as it still reels from the effects of the Fed’s hawkish policy earlier this month. However, it was up 3.3% for the year’s second quarter.
Going to technicalities, gold’s inability to breach the 100-day moving average was a bearish sign that could prompt even the patient exchange-traded investors to join in on the selling, notes ANZ analysts.
In other related news, platinum rose 0.3% but was also set for both its biggest monthly and quarterly drop since March 2020. Silver was up 0.3% while palladium holds steady on 0.5, on its way to a fourth consecutive quarterly gain.