Gold prices stand still near 3-week trough
On Friday, gold stood still, hovering near a three-week trough because the perspectives of June’s rate increase in America and a strengthening greenback kept weighing on the number one precious metal.
In New York, June delivery gold futures stuck to $1,255.35.
The June contract concluded Thursday’s trading session 1.54% lower, trading at $1,254.80 per ounce.
Futures were about to gain support at $1,247.50, Thursday’s minimum and resistance at $1,276.40, the highest peak from May 18.
Gold prices were affected after the Fed’s minutes unveiled on Wednesday. As follows from the minutes, June’s rate surge would be absolutely appropriate if the US economy demonstrated positive signs in the second quarter.
Apart from that, on Thursday, William Dudley, New York Federal Reserve President told that American economy could be strong enough to justify a rate hike in June or July.
Gold appears to be extremely sensitive to moves in American interest rates, as a surge would increase the opportunity cost of holding non-yielding assets.