The Gold Price Is Slightly Higher Following a ‘Brutal Week’ That Saw Its Lowest Level in Three Months

Following a series of interest rate hikes by European central banks on Thursday, gold futures experienced a modest increase on Friday, marking a slight recovery after three consecutive days of decline that drove the most-active contract to its lowest settlement in three months.

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In terms of price action, gold futures for August delivery on Comex gained $5.10, or 0.3%, reaching $1,928 per ounce. Conversely, silver futures for July delivery fell by 9 cents, or 0.4%, settling at $22.38 per ounce. Palladium futures for September delivery exhibited an increase of $17.90, or 1.4%, reaching $1,290 per ounce. Additionally, platinum futures for July delivery rose by $3.70, or 0.4%, reaching $930 per ounce. Copper futures for July delivery, however, experienced a decline of 6 cents, or 1.5%, reaching $3.83 per pound.

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While gold prices managed to find some support on Friday, both gold and silver are on track to conclude the week with significant declines. This marks another milestone in the ongoing sell-off of precious metals, with gold losing over $100 since its peak in early May.

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The recent interest rate hikes by central banks in Australia, Canada, the U.K., Switzerland, Norway, and Turkey, along with the Federal Reserve's indication of two additional rate hikes later this year, have contributed to the downward pressure on gold prices. Higher interest rates, intended to combat inflation, coupled with the promise of increased yields from global bonds and money market accounts, have dampened the demand for gold.

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Nevertheless, Raffi Boyadjian, lead investment analyst at XM, pointed out that gold appears to have found a potential support level after enduring a challenging week characterized by significant price declines.

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