On Friday, gold prices slumped as market participants locked in their revenues from last month’s surge to 23-month peaks on Thursday, generated by a weaker greenback.
In New York, August delivery gold futures lost up to 1.03%, trading at $1,285.05 per ounce. The August contract concluded Thursday’s trading session approximately 0,78% higher, trading at $1,298.40 per ounce.
Gold futures were likely to gain support at $1,273.0, the minimum of June 13 as well as resistance at $1,316.40, Thursday’s peak and a 23-month high.
The greenback weakened broadly earlier, right after the Fed kept its rates intact. That was the decision taken on Wednesday’s during the Fed’s two-day monetary policy gathering.
Obviously, gold is extremely sensitive to moves in American rates, because a soar would raise the opportunity cost of holding non-yielding assets, including bullions.
Sentiment on the US dollar also remained vulnerable when the US Department of Labor informed on Thursday that the overall number of folks filing for initial jobless benefits by June 11 leapt by 13,000, currently accounting for 277,000.