Geopolitical concerns saw gold trading slightly lower on Thursday, but still at 5 week highs. Markets wait for the US Federal Reserve bank decision on whether they will raise interest rates this month which will weigh on the price of gold.
Spot gold fell 0.2 percent at $1,266.08 per ounce, after reaching a high of $1,273.74 an ounce on Wednesday.
US gold futures dipped 0.5 percent to $1,265 an ounce.
Senior precious metals trader at MKS, Sam Laughlin said that the price of gold is being supported by the geopolitical concerns across global equities. Investors are looking to the US jobs data report that is due on Thursday before they instigate fresh positioning.
According to CME group, their watch toll, FedWatch puts an 87 percent chance of the Fed raising interest rates at their next meeting scheduled between June 13 – 14 based on positive data on the US payroll data.
Markets are also poised waiting for the decision by President Trump, on whether the US will continue to support the Paris climate accord in their fight against climate change and greenhouse gas reduction.
The upcoming snap general elections in Britain on the 8th June is going to be keenly watched by markets. A recent shocking poll by YouGov suggesting that there might be a ‘hung parliament’ has raised the prospect of turmoil.
On the other hand, some other pollsters have put the Tory government in a decisive win.
Silver declined 0.1 percent to $17.27 an ounce.
Platinum was steady at $943.50 an ounce.
Palladium lost 0.4 percent at $813.50.
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