- The world's gold money turns off in the 18/6 transaction. Plot: Kitco*
The market comes under pressure from the strong dollar and the signal tightens the U.S. Federal Reserve (Fed). Even so, the momentum was not too strong, due to the peace agreement between the U.S. and Iran which pulled the price of crude oil down to low, relieved the anxiety of inflation.
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"The biggest impact factor is Fed's tightening views. This pulls the dollar prices up to high, causing the gold to be pressed", Peter Grant - high-level metal tacticist at Zaner Metals, said.
Following the policy session on 17 June, the Fed announced to retain the interest. However, 9 officials have stated the need to raise interest once a year. CME FedWatch Tracking Tool also showed that the U.S. probability forecast market raised interest in December 85%. This ability is significantly higher than 61% before the Fed session.
Gold tends to fall in high-priced environments, due to precious metals not paying interest. The price has been under pressure from the Middle East war beginning, due to increased fuel costs which brought inflation up with it.
On June 18, the US and Iran released terms in the peace agreement. Despite this, the U.S. President Donald Trump warns to strike again if Iran does not fulfill its commitment.
World crude oil prices have been at the lowest level since the start of the war. Brent has a cost of 79 dollars a barrel - lowest since the two-thirds. Meanwhile, WTI only has 76 dollars a barrel.
Besides gold, other precious metals also descend. The current silver price dropped about 3% of its $65. Whites and Whites are just the same.
Local Thu * (in Reuters, Kitcoweg