The price of gold fell by 1.5%, returning to the opening level of the week, which was caused by the strengthening of the US dollar and partial profit-taking after the recent rally.
The focus was also on news about worldwide cyber outages that hit banks, airlines and broadcasters. Signs of disruption in one of the world's busiest financial centers emerged as London trade got underway. LSEG Group, which runs the London Stock Exchange, suffered an outage that affected user access to some of its products.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.18% to 104.36.
Meanwhile, the further fall in gold prices was limited by increased expectations of easing the Fed's monetary policy at the September meeting. According to the CME FedWatch Tool, markets see a 4.7% probability of a 25 basis point rate cut at the Fed meeting in July, a 96.2% probability of a rate cut in September, and a 98.5% probability of monetary policy easing in November. Non-yielding bullion’s appeal tends to shine in a low-interest-rate environment.
“Over the next 6-12 months, regardless of who wins the US election, we expect gold prices to rise to $2,700-$3,000,” Citi Research experts said.
"Official announcement of the Fed's easing of monetary policy is expected to further boost gold prices. Consequently, prices could potentially reach a record $3,000 by autumn 2024," said experts from the European broker Mind Money.