Gold prices breach $1800
Gold prices fell on Friday as the dollar index rose against major rivals, piercing the psychological level of $1800.
Later today we'll see important data from the US manufacturing PMI.
Some Fed officials mentioned this week the central bank could be heading for a 0.75% rate hike at its next meeting.
FOMC member John Williams believes the US economy could avoid getting into recession.
The final report of the GDP growth rate measured a contraction of 1.6% in the first quarter.
The Atlanta Federal Reserve expected a US contraction in the second quarter by 1%.
The dollar index rose 0.2% to 104.8 as of 5:38 GMT, with a session-high at 104.9.
Spot gold prices fell 0.5% to $1,797.5 an ounce, while marking a monthly loss of 2.2%, and a quarterly loss of 7.7%.
Gold on track to hit third monthly loss in a row
Gold prices fell in European trade for the fourth straight session to six-week lows as dollar climbs against a basket of major rivals.
The precious metal is heading for the third monthly loss in a row on weak demand on non-yielding assets and higher interest rates.
Prices Today
Gold prices declined 0.8% today to 1,802 an ounce, the lowest since May 16, after closing down 0.1% yesterday, the third loss in a row.
The Dollar
The dollar index rose 0.5% on Thursday, marking two-week highs at 105.54 against major rivals.
Markets continue to favor US bonds over gold amid bullish remarks by Fed Chair Jerome Powell's bullish remarks on interest rates this year.
Monthly Trading
Gold is down 2% so far in June on track for the third monthly loss in a row as global central banks move to control runaway inflation.
The Fed took a historic decision this month to hike rates by 0.75% to 1.75%, the highest hike since 1994.
Bank of England hiked rates by 25 basis points to 1.25%, the fifth such increase in a row.
Swiss Central Bank decided to hike rates by 50 basis points at the June 16 meeting to minus 0.25%, the first such increase since 2007, while analysts expected no change at minus 0.75%.
Higher interest rates weaken demand on gold prices as it becomes less attractive as an investment.
The SPDR
Gold holdings at the SPDR Gold Trust fell 1.74 tones yesterday, the seventh decline in a row to a total of 1,052 tones.
Euro sharpens decline to two-week lows on recession concerns
Euro fell in European trade for the third straight session against dollar to two-week lows amid concerns about global recession in Europe due to the Ukrainian war.
Prices Today
EUR/USD fell 0.15% on Thursday to 1.0415, the lowest since June 16, with a session-high at 1.0469.
Euro lost 0.75% on Wednesday, the second loss in a row off three-week highs at 1.0615.
Recession Concerns
Analysts predict a potential recession in the euro zone due to the ongoing Ukrainian crisis, even as the US economy proves more resilient.
The Dollar
The dollar index rose 0.1% on Thursday for the third straight session, hitting two-week highs at 105.19 against major rivals.
The gains come on haven demand amid concerns global recession, and after bullish remarks by Fed Chair Jerome Powell on hiking interest rates.
Monthly Trading
Euro is now down 2.9% so far in June on track for the fifth monthly loss in the last six months.