Muzhu Mining Ltd. (CSE: MUZU)
Creating lasting wealth by developing gold and silver properties with near-term mining potential
On Tuesday (June 25th local time), the price of gold fell due to the impact of the rising US dollar and US Treasury bond yields. Meanwhile, investors are awaiting US inflation data to be released later this week, which may provide clues for the timing of the Fed’s interest rate cuts this year.
As of 1:50 PM Eastern Time, spot gold fell by 0.6% to $2,318.82 per ounce. US gold futures dropped by 0.6% to $2,330.80. The US dollar rose by 0.2% against other currencies, making gold more expensive for holders of other currencies, while the benchmark 10-year Treasury bond yield also slightly increased.
Ryan McKay, Senior Commodities Strategist at TD Securities, said, “Central banks around the world still have significant physical demand, as well as demand in Asia… The expectation is that the Fed will eventually cut rates, and investors are very reluctant to short gold.”
According to data from the World Gold Council, global physical gold exchange-traded funds (ETFs) are an important category of gold demand, with inflows reaching $212 million last week, equivalent to 2.1 tons.
On May 20th, gold reached a historic high of $2,449.89, rising 12% year-to-date, benefiting from hopes of Fed rate cuts and strong purchases by central banks under geopolitical tensions.
This week, traders are anticipating the release of the US first-quarter Gross Domestic Product (GDP) estimate on Thursday and the Personal Consumption Expenditures (PCE) Price Index report on Friday.
Chicago Fed President Austan Goolsbee stated in an interview on Monday that he still expects further cooling of inflation, which is part of the process of opening the door to interest rate cuts.
On other fronts, spot silver fell by 2.5% to $28.88 per ounce, platinum fell by 1.4% to $980.86, and palladium dropped by 4.1% to $939.45.
