Spot gold lost more than 1.3 percent in value during the day, falling to $4,155 per ounce. This level was recorded as the lowest price since June 11. On a weekly basis, a decline of approximately 1.5 percent was noteworthy. August futures gold contracts traded in the USA also decreased by 1.7 percent to $ 4,173.30.
A STRONG DOLLAR IS PRESSING GOLD
The dollar index reached its highest levels in the last year, causing gold to become more expensive for investors trading in other currencies. This situation brought about a weakening in safe haven demand and increased the pressure on gold prices.
TRANSACTION VOLUME DECREASED IN ASIA
The closure of the Chinese and Hong Kong markets due to the Dragon Boat Festival also limited the transaction volume in global markets. The low liquidity environment caused movements in the gold market to be felt more clearly.
SLOWING SIGNAL IN PHYSICAL DEMAND
Physical demand remained weak in China and India, which are among the world’s largest gold consumers. While it was stated that buyers acted cautiously despite the prices in India falling to their lowest levels in recent months, it was noteworthy that gold in China was traded at a discount compared to international prices.
