Gold Prices Weaken As Markets Concerned About Rising Interest Rates.
In the trading of gold commodities in the afternoon to evening on the precious metal commodity exchanges entered the London market. That is where the price of gold is still moving weaker again with the effect of a Fed rate hike next week.
As we know that US employment data in the last period have been reported. Of course with the results that the US economic situation looks more solid and strongly supports the US central bank to continue to raise interest rates at this June interest rate meeting.
This condition is also influenced by the increasingly tight US unemployment rate. This is the highest unemployment rate in 18 years. This incident helped support the rise in US inflation and consumer purchasing power. Such conditions mean a signal for US economic activity that is heating up. So it needs cooling by raising the interest rates of the central bank.
Increase in interest rates
Against the backdrop of rising interest rates, it will not be strengthened again. This is an August contract on the Comex division of the New York Mercantile. Temporarily exchanged down $ 4.90 or 0.38% at $ 1298.20 per troy ounce. For the price of the July silver contract on Comex while it fell $ 0.17 or 1.01% at $ 16.65 per troy ounce. The price of gold is still not too low in trading. This is because of the US trade war with several countries in the world, especially with China that is still warm.
The imposition of tariffs on metal products from the European Union, Canada and Mexico and Japan. This has survived successfully against price fluctuations so as not to be too far from the psychological level of $ 1,300 per troy ounce to hold a gold correction.
Because investors will worry about investing in the future, if the problem is to protect it. The US only wants to be fair trade and wants to reduce its budget deficit. While other countries have a fair feeling so far in implementing trade with the US. The safe-haven potential will often emerge or the price of gold can be positive in today’s economic meeting.