Gold near their lowest levels in 3 months, with anticipation of ‎Powell’s speech

Gold settled today, Wednesday, near its lowest level in three months, after strong US economic data overshadowed gold’s status as a safe haven, while dealers await the speech of Jerome Powell, Chairman of the Federal Reserve (US Central Bank) and other data, in search of signs of raising interest rates.

By 0524 GMT, spot gold rose 0.1 percent to $1915.45 an ounce, hovering near its lowest level since March 16 at $1910 an ounce. And US gold futures settled at 1924.60 dollars an ounce.

According to “Reuters”, Matt Simpson, chief market analyst at City Index, said, “Strong economic data (in the United States) lifted the dollar and brought gold back to its lowest levels in June last night.”

The data released on Tuesday indicated that the US economy remains strong, which may prompt the Federal Reserve to raise interest rates again to curb inflation.

According to the Fed Watch service of the (CME) group, investors expect 77 percent of interest rates to be raised in July, and to reduce them from March 2024 onwards, and most major US banks expect to raise interest rates by 25 basis points. ,

High interest rates discourage investment in gold, which does not yield a return

The Reserve Board will publish the minutes of its meeting on June 13 and 14 on July 5, while it will hold meetings of the Federal Open Market Committee on interest rates on the 25 and 26 of the same month.

Investors are eagerly awaiting the personal consumption expenditures price index data for May, which will be released on Thursday, along with other data.

Powell will speak before the Monetary Policy Committee on Wednesday ahead of a European Central Bank forum

As for other precious metals, silver rose in spot transactions by 0.2 percent, to $ 22.93 an ounce. Platinum also fell 0.9 percent, to $916.83 an ounce. Palladium fell 1.1 percent to $1,281.48 an ounce.