Gold prices hover near two-week lows

Gold prices tumbled overnight, hovering near two-week lows around $2,336, marking the first weekly loss in three weeks.

By Nadia Elbilassy | @Nadia Elbilassy | 24 May 2024

Market open
  • Atlanta Federal Reserve President Raphael Bostic stated that inflation is slowly progressing towards the 2% target, suggesting that interest rates will need to stay elevated longer.

  • Asian currencies fell against the dollar, weighed down by a resurgent U.S.-China trade war, while EUR/USD held above 1.0800 but remained under pressure from strong US PMI data.

  • The dollar index traded near 104.99, with market focus on US durable goods orders expected to rise to 0.1% from 0.0% in April.

Gold

Gold price tumbled overnight and hovers near two-week lows around $2,336 during the Asian session on Friday. Marking the fourth consecutive day of decline for gold, which is set to record its first weekly loss in three weeks.

Higher yields and a stronger dollar, following hawkish Fed minutes, continue to pressure the yellow metal.

In official statements, Atlanta Federal Reserve President Raphael Bostic stated overnight that recent data indicate inflation is progressing towards the 2% target, albeit slowly, implying that interest rates will need to stay elevated for a longer period.

In currencies

Against the dollar, Asian currencies also fell weighed on by resurgent U.S.-China trade war. While the EUR/USD held above 1.0800. However, the pair remains under pressure due to the recent strength of the US Dollar, driven by strong US PMI data.

The dollar index was trading in a tight range today near 104.99 with markets focus falling on US durable goods orders which are expected to rise to 0.1% from 0.0% previous in April.