[ad_1]
Gold will continue to shine despite the weak dollar, said gold writer and pro Jim Jimards.
Simon Dawson | Bloomberg | Getty Images
Gold prices fell slightly on Monday, prolonging their losses after the metal hit a six-year high on Friday as investors canceled expectations of a sharp cut in interest rates in the end of the month, while tensions in the Middle East limited bullion losses.
Spot gold was down 0.2% to $ 1,422.74 ounce at 0137 GMT. The metal reached $ 1,452.60 in the previous session, its highest level since May 2013, before closing down 1.5%.
Gold futures in the US fell 0.2% to $ 1,424.10 an ounce.
Expectations of an aggressive reduction in interest rates rose after Federal Reserve Chairman John Williams, New York, pleaded for a preventative stimulus at a public holiday. speech delivered last week.
But a subsequent clarification that his remarks were theoretical and "not about potential political actions" has negated the prospects of a 50 basis point rate cut at the end of the month.
The Wall Street Journal announced that the Fed would likely cut rates by 25 basis points when it would meet later this month and that it could make further cuts in the future , given the uncertainties of global growth and trade.
According to CME's FedWatch tool, forecasts of a half percentage point interest rate cut at the July 30 and 31 Fed meeting have further progressed this Monday, reaching 14.5%, against 71% last week.
The dollar index was up 0.1% from a basket of major currencies on Monday.
Meanwhile, the confrontation on the most important waterway of the world oil trade has intensified with images showing the Iranian army defying a British warship during the seizure of an oil tanker in the Strait of Ormuz Friday.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.72% to 820.49 tonnes on Friday, from 814.62 tonnes on Thursday.
Hedge funds and money managers reinforced their upside stance on COMEX gold in the week leading up to July 16, the Commodity Futures Trading Commission (CFTC) said on Friday.
Consumers of major Asian hubs continued to sell physical gold this week, some converting their holdings into cash, after a price hike that also sparked the interest of investors who were expecting further gains.
Russia's gold reserves rose to 71.0 million troy ounces in early July, the central bank said Friday.
Source link
