Gold futures are sliding to their lowest levels in six weeks to kick off the trading week. With April coming to a close, the yellow metal is on track for a monthly loss following a roller coaster performance. This comes as the US dollar strengthens, geopolitical woes subside, and mixed economic data.
June gold futures tumbled $7.50, or 0.57%, to $1,315.90 per ounce at 16:08 GMT on Monday. Gold prices are trading at their worst levels since March 20 and are poised for a monthly decline of about 2.5%. Last week, the yellow metal recorded a weekly loss of 1%.
Silver, the sister commodity to gold, is also slipping to start the trading week. July silver futures slumped $0.132, or 0.80%, to $16.365 an ounce. The white metal has also fallen to its worst level since the middle of April. Silver prices will notch a monthly decrease of just under 2%.
Metal commodities are taking a hit by a rallying US dollar as the greenback climbed 0.30%. Commodities priced in dollars and the buck trade inversely because a strengthening dollar makes it harder for foreign investors to purchase precious metals.
Traders have also been following the 10-year Treasury yield note, which topped 3% last week for the first time in more than four years. The note, which is down 0.72% on Monday, typically encourages or discourages investors from diving into equities or
Investors may not have an appetite for
Also, Treasury Secretary Steven Mnuchin will visit China this week for important trade talks.
In economic data on Monday, the Bureau of Economic Analysis (BEA) reported that consumer spending rose 0.4%, income growth jumped 0.3%, and the personal savings rate dipped 0.2%. Last week, BEA figures showed the gross domestic product (GDP) increased 2.3% in the first quarter of 2018.
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