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Gold Price On Its Fourth-Month Low - Lowest Since The End of 2018

April 24, 2019 | Wednesday

Commodities

   

Gold prices drop on Wednesday, yet on its fourth-month low during the last session. Meanwhile, share markets increase as dollar incline upon a strong United States housing data. That discouraged concerns regarding the economic slowdown in the United States.

The spot gold went down by 0.3 percent, now amounting to $1,268.84 an ounce at around 03:28 GMT. That then hits its lowest since the end of 2018's amounting to $1,266.90 during its last session. Meanwhile, the United States gold futures gone lower amounting to $1,2709.70 per ounce.

According to Peter Fung, Wing Fung Precious Metals head of dealing (Hong Kong), major portion affecting the gold prices is the "strength of the dollar." That of which according to Fung also pressures "physical demands."

Elsewhere, dollar index moves near its 22-month high upon data showing that sales for new single-family homes from the United States inclined close to 1-1/2-year peak during the month of March.

Last Friday, upon the release of the United States GDP, the data shifted the existing concerns regarding a slowdown within the world's largest economy. The United States expects to surpass analysts estimation at about 2.1 percent rate in growth with Atlanta Federal Reserve's GDPNow model. That showing improvement between 2.2-3.4 percent. According to analysts, that kind of event could lift the global Gold and Silver, US sentiment, Spot gold, and dollar support.

Furthermore, there is existing pressure on gold prices coming from Asian shares gains at Wall Street. Both S&P 500 indexes and the Nasdaq records a closing peak.

The gold fell on its lowest in 2019 last session. That close to about 6 percent drop from its peak during the month of February which amounts to $1,346.73 per ounce.

Edward Meir, INTL FCStone analyst said in a note that the "gold's key support" amounting to $1,280 were "taken out" as compounding negativity driven the "50-day and 100-day moving averages" going south.

Meanwhile, the holdings for the SPDR Gold Trust which is the worldwide largest gold-backed exchange -traded fund last Tuesday drops to 749.63 tonnes. That its lowest since October last year.

For other metals, the silver fell at about 0.4 percent then amounting to $14.75 an ounce. That upon decreases towards its lowest since December last year at amount $14.71 closing price in the previous session.

   

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