Gold Drops Sharply Below $2400 Again
Gold prices fell sharply during today’s trading session on Friday,
settling once again below the $2400 per ounce level.
Topic
Gold
Prices were clearly affected by profit-taking on the precious metal,
along with the rising U.S. dollar index amid uncertainty surrounding U.S. interest rates,
especially after former President Donald Trump urged the Federal Reserve not to cut rates before next November.
As for today’s trading session, spot gold prices decreased by 1.82%,
recording approximately $2399 per ounce. Additionally, gold futures prices dropped by 2.09%
or $51 per ounce, trading near $2405 per ounce.
Hedge Funds
Hedge funds have raised their bets on gold to the highest level in four years.
Money managers’ bets on gold have jumped to the highest level in four years,
indicating investors’ concerns about the U.S. presidential election campaign,
as well as a renewed focus on the timing of interest rate cuts by the Federal Reserve.
Gold had reached its all-time high of $2483.73 per ounce last Wednesday.
This came as traders intensified their bets on deeper monetary easing
and sought a safe haven in the precious metal amid rising geopolitical risks.
China
China’s imports of Saudi oil dropped by 14% in June year-on-year.
China’s total imports of crude oil from Russia, its largest supplier,
rose by 5% in the first half of this year as refineries rushed for lower-priced crude,
while imports from Saudi Arabia, its second-largest supplier, fell.
Data showed that shipments received by China from Saudi Arabia in June fell by 14% year-on-year to 6.82 million tons. Shipments from the Kingdom have decreased by 13% year-on-year since the beginning of the year to 40.38 million tons, equivalent to 1.62 million barrels per day.
Total imports from Russia, including via pipelines and shipments,
in June fell by 20% year-on-year to 8.43 million tons, or 2.05 million barrels per day,
according to data from China’s General Administration of Customs.
This is down from 2.1 million barrels per day in May and also down from June 2023
when the record high of 2.56 million barrels per day was recorded.
Gold Drops Sharply Below $2400 Again