Gold is down roughly 8% so far this month, according to 3 Min Read* Platinum is forecasted to have its worst quarter and month since March 2020. (Updates prices, recasts, adds comments) 30 JUNE (Reuters) – On Wednesday, gold prices fell slightly, putting them on track for their largest monthly drop since November 2016, as investors remained cautious ahead of impending US jobs data and Fed taper negotiations. By 0846 GMT, spot gold had down 0.3 percent to $1,755.70 per ounce, after hitting a low of $1,749.20 on Tuesday. Gold futures in the United States declined 0.4 percent to $1,756.70. Bullion prices have dropped roughly 8% this month as a result of the Fed’s unexpected hawkish move. However, they are up roughly 3% for the quarter. As the economy recovers, equity markets stay robust, which “may be a drag on gold,” as it is viewed as a safe haven asset, according to UBS analyst Giovanni Staunovo, who added that gold might drop below $1,600 by the end of the year. Investors are also watching Friday’s non-farm payrolls, which, if robust, might put more pressure on gold, according to Staunovo. According to a Reuters poll of economists, the US Labor Department is anticipated to publish a gain of 690,000 jobs in June, up from 559,000 in May. Meanwhile, Federal Reserve Governor Christopher Waller, who described himself as “extremely hopeful,” warned on Tuesday that the US central bank may need to begin reducing its large asset purchase program as early as this year in order to raise interest rates by late next year. Silver was trading at $25.74 per ounce elsewhere. “While outperformance is possible, we see limited likelihood of a rising silver price in a decreasing gold market,” Morgan Stanley wrote in a note, adding that it was keeping its silver prediction at a flat $25 through 2022. Palladium fell 0.2 percent to $2,673.18 per ounce, putting it on track for a second month of losses. Platinum dropped 1.4 percent to $1,052.05 per ounce, putting it on track for its largest monthly and quarterly decrease since March 2020. (Bengaluru-based reporter Arundhati Sarkar contributed to this report, which was edited by Robert Birsel.) Continue reading
