On Monday, gold tumbled below the key psychological level of $1,250 as market participants cashed in on recent revenues for the precious metal.
April gold dipped $12.10, trading at $1,242.30, continuing Friday’s losses, when the contract was deprived of $10.70, settling at $1,254.30. Last week gold dived 0.4%.
Gold pulled back even as the evergreen buck decreased against the yen, with the metal’s sag below the key psychological support level of $1,250. As for silver, it went down 0.5%, trading at $15.74 per ounce.
Last week precious metals got a boost, when the Fed offered a reduced outlook for American interest-rate surges. Higher interest rates tend to drive the greenback. They also abolished the necessity to hold non-yield gold prices in US dollars.
The everlasting fears regarding global growth as well as an anxious approach generated by central banks, have kept boosting appetite for safer assets, including gold, that found support around the level of $1225.
Furthermore, fading expectations for American rate hikes should drive the number one precious metal right to $1,300, especially if the greenback resumes dropping.