A stronger dollar, boosted by fading Brexit repercussions and upbeat US economic reports, are dragging commodities down, including gold.
Precious metals including gold tumbled on Monday due to
firmer, positive equities causing a weak trend overseas. The easing Brexit
fallout impact on the US and optimistic US economic data are specifically what
contributed to solid equities, thus a stronger dollar.
Spot gold plunged 0.4% at $1,316.16 a troy ounce. Bullion
declined 0.7% last Friday, falling for a second week now. US gold toppled 0.5%
to trade at $1,316.20 an ounce.
“We could see some falling of gold prices with markets
thinking things are not as bad as expected post-Brexit and the good performance
of key US economic indicators,” stated Jiang Shu, a chief analyst at Shandong
Gold Group.
The decline was largely impelled by weak trends in global
markets as upbeat equity markets and gains in the greenback dampened demand
ahead of central bank meetings in the US and Japan set this week.
Based on data last Friday, hedge funds and money managers
continue to flock on bullish silver bets in the week to July.
