Michael Hewson, chief market analyst at CMC Markets UK, said in a note that demand concerns due to fresh COVID restrictions in China precipitated sharp falls in autocatalysts platinum and palladium. Silver fell 2.6% to $21.30 an ounce and platinum retreated 4.1% to $933.83. Palladium was down 6.8% at $1,803.23 per ounce. Morgan said in a note.Ī bullish gold outlook would require more signs that economic growth is cracking under the strain of higher inflation, the note added. The quick unwinding in gold highlights the current tug-of-war between its pricing drivers, with firm inflation being countered by bets for aggressive policy responses, J.P. That volatility has extended into Monday with bullion beating a sharp retreat from a one-month high hit during the Asian session. Gold hit a one-month trough of $1,824.63 post the inflation data, but rebounded strongly as economic concerns took centre stage. CPI data on Friday led to traders now betting on a total of 175 basis point (bps) in rate hikes by September, with some seeing a chance for a 75 bps move this week. There's a massive correction going on, and when volatility gets that high, you can't find safety or comfort anywhere," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago. "There's no safety trade anywhere, so gold will be liquidated. Fed, to become the preferred safe-haven at the expense of gold.Ī stronger dollar hurts gold as it makes the metal expensive for overseas buyers, while higher interest rates further dent its appeal as they tend to lift Treasury yields, raising the opportunity cost of holding bullion. The dollar index hit a multi-decade peak, supported by fears of a global economic slowdown and bets on steep interest rate hikes by the U.S. Gold futures settled down 2.3% at $1,831.80. Rhino 7 or Rhinoceros 7 (typically abbreviated Rhino, or Rhino3D) is a commercial 3D computer graphics and computer-aided design (. Federal Reserve, eroding appeal for bullion and other precious metals. June 13 (Reuters) - Gold and palladium suffered sharp declines on Monday, as the dollar rallied on bets for steep interest rate hikes by the U.S.
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