Yellow metal will stay weak amid concerns about the global economy

4 Jul 2022 , 01:01 PM

On Monday (04-07-2022), gold prices inched down in global markets as a strong US dollar reduced demand for metals priced in US dollars and offset support from falling Treasury rates. As of 01:01 GMT, spot gold was down 0.2% at $1,807.19 per ounce after falling to a five-month low of $1,783.50 on Friday. The price of US gold futures dropped by 0.5% to $1,809.50.

On the Multi-Commodity Exchange (MCX), gold contracts were up 0.49 percent at Rs 52,172 for 10 grams at 9:36 am, while silver prices were up 0.1 percent at Rs 57,800 for a kilogram.

After the heads of the US, UK, and European central banks signaled further policy action to fight inflation at the annual ECB Forum on Wednesday, gold and silver markets saw substantial volatility last week. Also rising was the dollar index, which caused precious metal prices to fall.

During the week, the dollar index again exceeded the 105-mark threshold. On Friday, gold prices fell below $1800 per troy ounce before rising to $1812.90 per troy ounce, while silver prices fell to lows not seen in nearly two years, closing below $20 per troy ounce.