Gold quotes continue to drop, largely due to the rapid rise of the stock market. The US, Asian and European stock indices have been growing for several days in a row now, which allowed some to reach their highest values over the past three months. Market participants are encouraged by the ongoing recovery of the global economy, as evidenced by incoming statistics.
The drop of gold has several factors. First is the weakening US dollar, which has recently been feeling extremely insecure, and the second is the ongoing riots and mass protests across the streets of America. The unrest though is no longer putting much pressure on the mood of investors now.
Nevertheless, in the morning, gold fell by another 0.51% and reached the level of $1,718.29 per troy ounce. The support for the precious metal is at the value of $ 1,710 per troy ounce, while resistance came around $ 1,761 per troy ounce.
Most market participants have now ceased to react sharply on negative external factors. Riots, conflicts and other incidents no longer shake investor confidence that economic recovery is proceeding at a good pace. Analysts also argue that global outlooks are now favorable, which, of course, seriously puts pressure on the demand for precious metals.
But the economic situation is still far from ideal, so gold still has some support. Investors still strive to provide their assets with some security that can only be expected in the precious metals sector.
Thus, Palladium rose by 1.57% today and went to the level of $ 1,979.84 per troy ounce, while Silver, on the contrary, decreased by 1.13%, dropping to a value of $ 17.89 per troy ounce. Now, palladium has started to move down, falling by about 0.54%, amounting to $ 834.39 per ounce.
Copper futures for July delivery indicate a downward trend, falling this morning by about 0.36%. Its cost at the moment is $ 2,486 per pound.
Source: Gold quotes continue to drop