Key Highlights

• Gold got a brief reprieve on Wednesday after striking a low of almost seven months the day before.
• The dollar took a breather following a ferocious push to 20-year highs.
• By 0330 GMT, spot gold increased by 0.3% to $1,770.27 per ounce. 
• U.S. gold futures rose by 0.3% to $1,769.10.
• The previous session saw Gold drop as much as 2.6 per cent to $1,762.81, its lowest level since mid-December.
• The gold and silver rates opened lower in the key spot markets on Friday, July 8, 2022

The gold and silver rates opened lower in the key spot markets on Friday, July 8, 2022. 

Additionally, gold experienced a brief respite on Wednesday after hitting a low of almost seven months the previous session as the dollar took a breather following a ferocious climb to 20-year highs.

By 0330 GMT, spot gold increased by 0.3% to $1,770.27 per ounce. Additionally, U.S. gold futures rose by 0.3% to $1,769.10.

According to Michael McCarthy, the chief strategy officer at Tiger Brokers in Australia;

 “After a substantial decline, there has been a very tiny recovery, and gold may now be headed lower in the medium term after breaking through support between $1,790-$1,800,” 

The previous session saw gold drop as much as 2.6 per cent to $1,762.81, its lowest level since mid-December.

The prognosis for gold is dimmed by the twin effects of a stronger U.S. currency as a result of higher rates and higher rates themselves having a direct impact on bullion.

As investors flocked to the safe-haven currency due to increased recession fears, the dollar index remained close to its highest levels since 2002.

However, a tiny decline in the dollar of roughly 0.1% during Wednesday’s Asian trading hours made bullion purchased in greenbacks slightly less expensive for buyers holding other currencies.

According to Wang Tao, a technical analyst for Reuters, spot gold may challenge a support level at $1,756 per ounce, and a break might cause a slide to $1,748.

According to calculations by Reuters, the number of rate increases by major central banks in June was higher than in any month for at least two decades. With inflation near multi-decade highs, policy tightening is unlikely to slow down this year.

The opportunity cost of storing bullion, which pays nothing, increases with higher rates and bond yields.

Later in the day, the U.S. Federal Reserve will issue the minutes from its June policy meeting, which might give investors a clearer idea of the path that interest rates will take.

Platinum down 0.7 percent to $859.52, palladium fell 0.2 percent to $1,929.35, while spot silver fell 0.1 percent to $19.27 per ounce.

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