Gold prices firmed at the start of the trading week after reports of North Korea amplified its nuclear strength. The yellow metal also made slight gains on dampened expectations of the Federal Reserve raising interest rates next month over
June gold futures rose $3.70, or 0.30%, to $1,231.40 per ounce at 16:28 GMT on Monday. Gold posted a modest weekly gain of 0.1% last week after
Silver is also rallying to kick off the trading week. July silver futures climbed $0.24, or 1.51%, to $16.65 an ounce. Silver recorded a 1% weekly increase last week.
The North Korean government confirmed on Monday that it had carried out a test of a newly developed mid- to
Gold prices were further supported by a dip in the US dollar. The greenback fell 0.30% against a basket of currencies due to weaker US economic data. A tumbling dollar is good for commodities like gold and silver because it makes cheaper for foreign investors to purchase.
Due to mixed US economic data and geopolitical worries, the market’s expectations for a June rate hike has diminished. According to the CME Group FedWatch tool, there is now a 78% chance of the US central bank pulling the trigger on another rate hike, down from 90% last week.
Gold is sensitive to a
Hedge funds and money managers have reduced their net long positions in gold to their lowest levels in six weeks ending May 9.
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