Gold prices are attracting sellers this week after it slipped towards its multi-week low. The XAU/USD index, which tracks the performance of the precious metal shows the commodity falling to the $2,323 level. It is down close to 0.16% in the day’s trade and shed nearly 4 points on Monday.
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Both gold and the U.S. dollar are trading on the back foot on Monday. Local Asian currencies gained strength against the U.S. dollar on Monday’s opening bell. The Indian rupee took the top spot after surging 43 paisa hours after Monday’s opening bell. Around six leading Asian currencies briefly spiked against the U.S. dollar today.
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Gold Attracting Sellers This Week
The price of Gold is oscillating in a range near a three-week low on Monday. If gold fails to attract buying pressure, chances of dipping below the $2,300 mark remain high this week.
The dip in price comes at a time when the U.S. Bureau of Economic Analysis (BEA) published a report on Friday showing the Personal Consumption Expenditures (PCE) Price Index rose 0.3% in April. The rise in PCE led the commodity market to slip leading to losses. Institutional funds pulled out investments fearing further losses and the effects are reflected in gold prices during this week’s trade.
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In addition, the optimism over a ceasefire plan in Gaza by Biden is holding back investors from aggressive bets. Therefore, it is highly unlikely that gold and the U.S. dollar could attract bullish sentiments this week in the indices.
It is advised to remain cautious before taking an entry position in gold and the U.S. dollar this week. Most of the indicators point towards a dip in price due to macroeconomic pressures affecting their prospects. Read here to know a realistic price prediction on how high gold prices could surge in the charts this year in 2024.
