Singapore, June 29 (BNA): Gold prices touched their lowest in more than three months today, Thursday, falling for the third consecutive session, as major central banks reiterated their hawkish stance on monetary policy to calm exacerbating price pressures.
Spot gold fell 0.2 percent to $1,903.69 an ounce by 0635 GMT, the lowest since mid-March. US gold futures fell 0.5% to $1,911.80, according to Reuters.
US Federal Reserve Chairman Jerome Powell has not ruled out raising interest rates at the next central bank meeting, as leaders of the world’s major central banks see more policy tightening.
Powell’s hawkish remarks fueled higher interest rates for longer, with the higher opportunity cost of holding gold diminishing the metal’s attractiveness, said Christopher Wong, strategist at OCBC FX.
Bullion is down 3% so far in June and looks set to end the quarter in negative territory for the first time since September 2022, as traders pushed expectations for an end to the rate hike cycle.
The prospect of higher interest rates is weighing on non-interest-bearing gold, which has also come under pressure as the dollar climbed to two-week highs. Since gold is priced in dollars, a strong US currency makes gold more expensive for overseas buyers.
Market participants now await US Initial Jobless Claims and Q1 GDP figures due later in the day, along with May PCE data on Friday.
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