Written by Gina Lee
Investing.com – It was down on Wednesday morning in Asia, falling near a two-month low and heading for its worst monthly drop since November 2016. Investors are now waiting for more indications of the US Federal Reserve’s monetary policy.
It was also down 0.26% to $1,758.95 by 12:53 AM ET (4:53 AM GMT), after falling to its lowest level since April 15 on Tuesday. The yellow metal fell 7.5% for the month of June, still feeling the effects of the surprise Federal Reserve release earlier in the month. However, it rose 3.3% for the second quarter of 2021.
“Gold has consolidated near its lowest levels since the shift in the Fed’s monetary policy strategy and is now awaiting US economic data for further guidance,” Ilya Spivak, currency analyst at DailyForex, told Reuters.
“It will be the main driver of the market in the near term, if it shows higher wage inflation and strong job growth, we will see the next floor in gold,” Spivack added, referring to the US jobs report for June due on Friday.
Meanwhile, investors also took note of Fed member Christopher Waller’s comments on Tuesday, as Waller was “very optimistic” about the US economy and expected the central bank to start raising interest rates in 2022.
On the technical side, ANZ analysts wrote in a note that gold’s inability to break through the 100-day moving average was a bearish sign that could prompt ETF investors, who have been impatient thus far, to join the sell-off.
In terms of other precious metals, platinum rose 0.3%, but is set to record its largest monthly and quarterly decline since March 2020. It rose 0.3% while holding 0.5, on its way to achieving a fourth consecutive quarterly gain.
ADP report was released, beating expectations, as the estimate was heading towards 600,000 jobs, while the current figure showed 692 thousand jobs. This indicator is published two days before the publication of the ADP report, which provides solutions in the field of employment for companies, and this statement is expected to reflect negatively on gold.
Gold is currently recording 1758.65, down $5 by 0.28%, and the wave of this sharp decline began this week due to the strength and conflicting statements of the Fed.
On the other hand, oil prices were positively affected, as it moved positively by 1.5%, with an increase of more than the dollar, to reach its price of 74 dollars in these moments, while it exceeded the limits of 75 dollars in these moments, recording 75.23 dollar convergence.
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