Gold hovers near week lows as dollar climbs
Gold prices declined on Thursday, almost hitting week lows as the dollar climbed against major rivals ahead of Fed Chair Jerome Powell's Congressional testimony.
Prices Today
Gold prices declined 0.55% today to $1,827 an ounce, after rising 0.3% yesterday, the first profit in four days, off week lows at $1,823.
The Dollar
The dollar index rose 0.5% on Thursday against a basket of major rivals after a three-day decline, pressuring gold prices.
Fed Chair Jerome Powell said yesterday the Fed is committed to control prices even if that led to a recession.
Such remarks bolstered expectations of another 75 basis points hike in July, and a 50 basis points hike in September.
The SPDR
Gold holdings at the SPDR Gold Trust fell 2.03 tones yesterday, the second decline in a row, to a total of 1,071 tones, the lowest since June 14.
Euro gives up two-week high on recession concerns
Euro declined in European trade off two-week highs against dollar on track for the first loss in four days on active profit-taking.
Euro is declining on profit-taking amid renewed concerns about recession in Europe following a spate of disappointing data.
Prices Today
EUR/USD fell 0.8% to 1.0482, with a session-high at 1.0581, after closing up 0.3% yesterday, the third profit in a row, marking two-week highs at 1.0605.
Recession Concerns
UK manufacturing PMI slowed down to 53.4 in June, the lowest since July 2020, missing estimates of 53.5, and down from 54.6 in May.
Germany's services PMI slowed down to 52.4, the lowest since January, missing estimates of 54.6, and down from 55 in the previous session.
France's manufacturing PMI plumbed 51 in June, the lowest since November 2020, and missing estimates of 53.9, and down from 54.6 in the previous reading.
The data raised concerns of a deep recession soon in European economies, which would force the ECB to take a more bearish stance.
Lagarde
ECB President Christine Lagarde said she doesn't expect Europe to go in recession, however the ECB will take precautions.
