1-866-646-8465

1-866-646-8465

Gold falls, on track for fourth straight weekly decline
Date Published: May 13, 2022
Gold bars

Gold futures lost ground Friday, with the yellow metal on track for a fourth straight weekly decline as a surging U.S. dollar outweighs its attractiveness as a hedge against inflation.

Gold for June delivery
GC00,
-0.82%

GCM22,
-0.82%

fell $12.70, or 0.7%, to $1,811.90 an ounce on Comex, on track for a 3.8% weekly fall after its lowest finish on Thursday since Feb. 7. July silver
SIN22,
+1.09%

fell 9.3 cents, or 0.4%, to $20.68 an ounce, headed for a 7.5% weekly tumble.

The ICE U.S. Dollar Index
DXY,
-0.33%
,
a measure of the currency against a basket of six major rivals, was off 0.1% but has jumped more than 1% on the week, hitting a level last seen 20 years ago. A stronger dollar is seen as a negative for commodities priced in the unit, making them more expensive to users of other currencies.

“The current decline in the price makes us keep a close eye on further developments. Yesterday, gold took a sharp plunge under the [200-day smooth moving average], which is often a bearish factor for the instrument. A consolidation of the week under $1,830 would reinforce that signal,” said Alex Kuptsikevich, senior market analyst at FxPro, in a note.

That would open the way for a drop of another 25% toward the $1,350 area, near the 2015-2018 highs, the analyst said, though there is scope to avoid the bearish scenario.

“If we see an uptick in buyers’ in the hours and days ahead, we could say that gold is in a correction,” Kuptsikevich said. “Potentially, a reversal to the upside from these levels could signal the start of a new wave of long-term growth, the first impulse of which was in 2018-2020, followed by a prolonged wide side trend. A potential bull target, in this case, could be the $2,500 area.”

In other metals trade, July copper
HGN22,
+1.79%

fell 0.8% to $4.068 a pound.

July platinum
PLN22,
-0.25%

rose 0.3% to $934.20 an ounce, while June palladium
PAM22,
+3.09%

jumped 2.4% to $1,906 an ounce.

Recent Articles

How to Get the Most Out of Diversification

How to Get the Most Out of Diversification

On May 11, 2022, Forbes published an article regarding alternative assets and their importance in a portfolio. But knowing what to do and knowing how to do it are very different. With so many options and strategies, how can you know you’re making the best decisions...

Three Things to Read Before Buying Gold

Three Things to Read Before Buying Gold

Gold has once again been making headlines as the nation’s financial markets continue to face uncertainty. On April 22, 2022, Barron’s reported that gold had made yet another run at $2,000/oz., nearing its all-time-high reached in August 2020. That same day, Barron’s...

What Does Mintage Mean for Coins?

What Does Mintage Mean for Coins?

Mintage means more than the process of producing coins. The word “mintage” also refers to the maximum number of a specific coin that has been produced. According to the Royal Canadian Mint, mintage can range from 10 to 65,000 and beyond. Silver American Eagles, for...

Free Gold Info Kit

Sign up now to receive the ultimate guide to gold ownership, unlock special offers, and more.

Access Now

u.s. money reserve gold information kit 2022

Shop Now

Watch helpful videos about precious metals education, U.S. Money Reserve news, client testimonials, and more.

Shop Now