Find out the main drivers for this week
Gold goes down due to receding geopolitical risks and strengthening greenback
On Monday, gold kept close to the recent minimum for five weeks amid a dive in geopolitical tensions, a rise in the evergreen buck as well as a dive in demand for the number one precious metal.
On the Comex exchange June delivery gold futures dived by 0.38% hitting $1318.3 a troy ounce, approaching the Thursday's minimum of five weeks at $1315.70.
Demand for gold slumped amid weakening geopolitical tensions on the Korean peninsula.
The US currency rallied after Friday’s dive. The US dollar index, evaluating the purchasing power of the American dollar against six key currencies, tacked on by 0.19% being worth 91.48.
As a rule, the appreciation of the American dollar makes the number one precious metal less accessible to keepers of other currencies.
The previous week, the US dollar index rallied 1.37% due to the surge in yield of US government bonds and also the prospects for accelerating the Fed's interest rate lift in 2018.
The evergreen buck was backed after the previous week's revenue of 10-year US government bonds beat the psychologically important level of 3% for the first time since 2014 that strengthened forecasts of inflation surge.
At the time of writing, the yield of US ten-year bonds inched down and ended up with a reading of 2.964%.
The recent increase in profitability generated investors’ fears of accelerating of the pace of interest rate hike, which makes the profit-making gold less attractive to market participants.
Investors' attention is focused on the forthcoming gathering of the Federal Reserve this week as well as a report on employment in America for April, which is going to be released on Friday.
According to forecasts of most market experts, as an outcome of its two-day gathering on Wednesday, the Federal Reserve is going to keep the interest rate intact after its lift in March.
The price for WTI has risen to its highest levels since the beginning of May.
On Wednesday, the yellow metal managed to extend gains for the fourth consecutive day, while other metals are going down…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.