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  • Writer's pictureanalysiswatch

Title: Gold Up Over Weakening U.S. Dollar

Jun 20, 2022 12:34AM ET

By: AnalysisWatch

Gold prices rose in Asia on Monday morning as the US dollar weakened ahead of the US holiday.

Gold futures contracts rose 0.34% to $1,846.70 an ounce by 1:30 a.m. EDT.

U.S. markets are closed on Monday for the holiday.

"Today is a holiday in the US, which means liquidity - and therefore volatility - is likely to be lower, making it difficult for gold to move directionally without a new catalyst," Matt Simpson, chief market analyst at City Index, told Reuters.

"Gold has been in a choppy range between $1,805 and $1,880 since May 19. "That makes it more of a traders' market than an investors' market," he added. "We believe traders are choosing to buy above US$1,800 and sell below US$1,880," Simpson added.

Asian markets fell on concerns that tighter monetary policy could slow economic growth.

Last week, gold prices ended lower due to a stronger dollar and interest rate hikes by major central banks. The U.S. Federal Reserve announced a 75 basis point rate hike on Wednesday, the biggest increase since 1994, and the Swiss National Bank also unexpectedly raised rates by 50 basis points on Thursday, while the Bank of England raised its rates to 1.25% on the same day.

Among other precious metals, silver rose 0.64%. Platinum rose 0.14% and palladium 2.25%.

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