© Reuters
by Ambar Warrick
Investing.com – Gold and copper prices fell further on Monday as the dollar hit a new 20-year high amid growing concerns about rising interest rates and a possible economic recession.
Metals markets fell last week after interest rates rose and warned of potential economic pain as they looked to combat the flight.
Economic indicators from and the also showed a clear contraction in business activity, escalating fears of a recession and dampening demand expectations for metals markets.
It was unchanged around $1,643.82 an ounce, while it was down 0.3% to $1,651.30 an ounce by 19:31 ET (23:31 GMT). Both instruments are trading at their lowest levels since early 2020, after suffering sharp losses last week.
It fell slightly on Monday after briefly hitting a new 20-year high. The strength of the US currency is expected to continue as the Federal Reserve continues to raise interest rates.
Gold prices suffered heavy losses this year as the prospect of higher yields pushed traders into the dollar and Treasuries. Traders are now heading for further declines in bullion prices, given that gold fell below two key support levels last week – $1,700 and $1,650.
Among industrial metals, it fell 0.4% on Monday to $3.3575 a pound, trading near two-month lows. Prices of the red metal fell 5% last week after a series of weak economic readings that raised concerns about slowing global economic growth.
Copper prices have been hit particularly hard this year by the economic slowdown in main importer China. Slowing industrial activity in the United States and Europe has exacerbated recent losses.
However, a potential supply crunch, caused by the strike at Escondida, the world’s largest copper mine, may benefit prices in the long run.
from San Jose News Bulletin https://sjnewsbulletin.com/gold-fixed-below-1650-copper-extends-losses-on-recession-fears-by-investing-com/
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