🟡GOLD loses 1.5%

5:32 PM 23 May 2024

Metals under pressure from a strengthening dollar. Gold drops more than 4% from all-time highs

Gold futures are losing 1.5% today as bond yields rise and the dollar index (USDIDX) rebounds, following strong preliminary US PMI data for May. The market now expects that the first full Fed hike is not priced until December, this year. Prior to the release of today's data, it was November. The chances of policy easing in September have also fallen. Particularly 'worrisome' for Fed policymakers could be a very strong reading from services, which unless revised sharply lower could suggest continued inflationary pressures in this sector of the economy. Today's dollar-supporting data:

  • S&P Composite PMI: Currently: 54.4; Forecast. 51.1; Previously. 51.3
  • S&P Manufacturing PMI: Currently: 50.9; Forecast. 50.0 Previously 50.0
  • S&P Services PMI: Currently: 54.8; Forecast. 51.2; Previously. 51.3
  • US Initial jobless claims: Currently: 215 k; Forecast: 220 k; Previously: 222 k.

Gold quotes are losing strongly for the second day in a row, triggered by expectations that the Fed will keep interest rates unchanged for longer. Nevertheless, it should be remembered that the recent historical peaks on gold were caused, among other things, by Powell's dovish verbiage during the last decision, which was reinforced by the inflation report. Currently, almost 2/3 of the May move has already been reduced. A weaker reading of activity in the Chicago region was partially offset by a stronger-than-forecast reading from Kansas.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

'Sspooked' by the hawkish data, the stock market performed rather poorly, with the exception of large technology and semiconductor companies, where sentiment was supported by the Nvidia (NVDA.US) report. Downward pressure is particularly evident in gold prices, which have come under pressure from the dollar and yields, which for 10-year treasuries have already reached nearly 4.49% and are trading up 5 basis points. Also silver and copper prices are falling, with downward pressure seen on Chinese stock market futures.

GOLD (D1 interval)

Source: xStation5

Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence