Gold struggles close to 3-week minimums
On Monday, gold futures struggled close to three-week minimums during European trade, thus contributing to last week’s abrupt losses, as markets kept factoring in the possibility of another interest rate surge by the Fed in June.
In New York, June delivery gold futures dipped 0.15%, trading at $1,251.00 per troy ounce. Last Thursday, gold prices dived to $1,244.60 – a minimum not seen since April 28.
Last week gold futures sagged 1.53%, trading at $20.40, the second straight weekly dip, amid evident signs that the Fed could increase its rates next month.
Last week expectations for a summer rate rise mounted after William Dudley, New York Federal Reserve President told American economy could be strong enough and it would justify a rate increase already in June or July.
The hawkish comments arose right after the Fed’s minutes of the latest policy gathering suggested a rate surge could be actual in June if the US economic data demonstrates stronger second-quarter growth along with firming employment and inflation.