Are Gold Prices Headed for the Biggest Loss or Hike; Know Here!!
On Thursday, Gold prices witnessed an unexpected hike after touching a month low level yesterday itself.
However, what is coming up as a pleasant hike is expected to make way for the lowest ever plunge since November 2015 as the US interest rates are headed for a rise.
What Caused the Sudden Hike in Gold Prices?
The potential reason for this increase is Hawkish comments by top officials in regard with US Dollar interest rates. On Thursday, Gold prices slipped down by 0.6 percent in early trade records, reaching figures of USD1, 212.20 for every ounce. These numbers are the weakest ever since February this year. When the markets closed on Thursday, by then the gold prices had rebounded by 0.2 percent, thus, closing at USD1, 221.95. These figures are in accordance with the US jobs data. The losses witnessed over the Week were majorly due to Wednesday’s loss of 2.3 percent.
Now it has been reported that several gold markets including London will remain closed over the Weekend until Monday to celebrate Easter. This holiday time may further trigger the Gold losses.
Earlier Gold prices had increased for a short-lived duration after the Brussels attack. However, this rise dissipated very soon and this hike on Thursday is looked up to as an influence of Patrick Harker's statements amongst other concerned officials on US Labor Market. He hinted at how the authorities were considering renewal of policy tightening by the very next month.
Another reason is the strengthening of US Dollar that has recovered really fast, while Gold was falling down.
Among other precious metals, Silver gained around 0.1 per cent to climb up to USD15.23, whereas Palladium was down by 1 percent to stop at $574 according to reports late on Thursday.
Gold Prices in Asian Market
The trend in Asian market was slightly opposite to what was expected as prices fell down largely hit by the holiday season until Sunday for festivities.