On Friday (May 24), spot gold consolidated at a low level after falling for three consecutive days. It is currently trading around US$2330, waiting for the Federal Reserve to cut interest rates.cryptoandgamingFurther clues.
Gold and silver fell sharply on Thursday, falling for a third consecutive session after the Federal Reserve's minutes showed some policymakers were willing to raise interest rates if necessary to fight inflation.
Fed minutes showed that Fed officials expressed disappointment at the "high" inflation data at their May meeting, saying the latest data "suggests that inflation will be more sustained in the coming months."
Ricardo Evangelista, senior analyst at ActivTrades, said in a market comment that after the minutes were released,"traders began to set November as the time when the Fed is more likely to cut interest rates for the first time, which has driven up U.S. Treasury yields and a stronger U.S. dollar index, which has led to a decline in non-income precious metals."
On Thursday, spot gold plunged US$50, continuing to slide from near a high of 2380, and falling all the way to 2,326cryptoandgaming$.90, a drop of more than 2% on the day. Meanwhile, gold futures for June delivery fell 55 per cent on the New York Mercantile Exchangecryptoandgaming$.70, closing at $2,337.70, a decrease of 2.3%. Dow Jones Markets data showed that prices of the most active contracts posted their largest one-day percentage decline since April 22.
On May 20, the gold price closed at a new high of $2,438.50.
Silver fell $1.04, or 3.3%, to close at $30.46 in July, setting its lowest closing price in a week.
However, silver prices are still up 26.4% so far this year. Silver hit a high of $32.75 on Monday, the highest intraday level for the most active contract since late January 2013.
Analysts at Sevens Report Research wrote in Thursday's reportcryptoandgaming:"Gold's upward trend remains unchanged, but given the increased volatility of gold prices, the risk of a more significant correction in the near term has increased."
