Gold Prices Weaken As Markets Concerned About Rising Interest Rates.
In commodity trading of gold in the afternoon to late afternoon on the precious metal commodity exchanges entering the London market where gold prices are still moving to weaken again with the effect of the Fed interest rate rise next week.
As we know that US employment data in the past period has been reported with the result that the US economic situation looks more solid and strongly supports the US central bank to continue raising interest rates at this June interest rate meeting.
The condition is also affected and supported by the increasingly tight US unemployment rate at which the unemployment rate is currently at its best level in 18 years, helped by average earnings or hourly wages that could also support US rising inflation and power buy the consumer.
Conditions like this means a signal to the US economic activity that is heating up, so it takes cooling by raising the interest rate of the central bank. With the background of rising interest rates, it has become a signal that gold will not strengthen again.
This makes the price of gold for August contracts on the Comex division of the New York Mercantile Exchange while temporarily down $ 4.90 or 0.38% at $ 1298.20 a troy ounce. For July’s silver contract price on the Comex temporarily weakened $ 0.17 or 1.01% at $ 16.65 per troy ounce.
But the price of gold itself is still not too sunk in this trade because of conditions of US trade war with several countries around the world, especially with China is still warm. The imposition of tariffs of metal products from the European Union, Canada and Mexico and Japan, has indeed managed to withstand price fluctuations so as not to get too far from the psychological level of $ 1300 per troy ounce.
The situation of trade war will continue to hold the correction of gold, because investors will be worried about the future of its investment in the US if the problem of protection of this trade is protracted without any certainty of the solution.
While on the other hand, the US just wants to be fair in its trade and want to reduce its budget deficit. While other countries have felt fair so far in implementing trade with the US. Safe-haven potentials will often appear or gold prices could be positive in today’s trading with the non-economic situation as it has not reached an agreement at the G7 meeting to take place in Canada this weekend.