Gold prices fell again on Tuesday, showing a drop from their highest ever values. Right now, spot gold costs $3,314.52 per ounce, down by 0.8%. Meanwhile, U.S. gold future prices are at $3,324.30, a decrease of 0.7%.
The drop in gold prices is linked to improved feelings about the trade situation between the U.S. and China, making gold less appealing as a safe investment. Investors are also waiting for important U.S. economic reports this week that could influence future decisions from the Federal Reserve, which manages the country’s money policy.
Experts predict that gold might struggle around the resistance price of $3,373 and may drop to support at $3,293 again. Ricardo Evangelista, a senior analyst, believes that positive news about trade and a slight recovery of the U.S. dollar are pulling gold prices down.
However, there are still strong reasons to think that gold prices could go up in the long run, especially as central banks in emerging markets continue to diversify their reserves, according to IG market strategist Yeap Jun Rong.
Interestingly, China’s gold imports through Hong Kong shot up by 41.9% in March compared to February, according to new data released by the Hong Kong Census and Statistics Department.
Investors will keep an eye on key U.S. economic data this week, including the personal consumption expenditures price index and the monthly jobs report set for Friday.
In related metals, silver prices increased by 0.2% to $33.25 per ounce, platinum rose by 0.4% to $988.97, but palladium lost 0.2%, dropping to $947.31.
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