Gold Prices Hover Below Record Highs Amid Firm Dollar and Treasury Yields
Spot gold remained steady at $2,250.79 per ounce, staying below Monday’s record peak of $2,265.49, while U.S. gold futures rose 0.6% to $2,271.30. Despite recent highs, overbought conditions prompted a mild pullback. The U.S. dollar near a 4-1/2-month high and elevated Treasury yields limited gold’s gains, following positive U.S. manufacturing data. Expectations of a June interest rate cut declined to 63% after the data release. Attention turns to Friday’s U.S. nonfarm payrolls report for further market direction.
Oil Prices Gain on Demand Recovery and Middle East Tensions
Brent futures for June delivery rose to $87.79 a barrel, while WTI crude futures for May climbed to $84.03 a barrel. Strengthening demand, driven by robust U.S. and Chinese manufacturing data, bolstered prices. The prospect of U.S. futures breaking a technical resistance level at $84.00 could push them towards the mid-$90s. Escalating tensions in the Middle East, highlighted by an Israeli strike on Iran’s embassy in Syria, raised concerns about potential disruptions to oil supply. OPEC’s upcoming meeting aims to review market conditions and members’ compliance with output cuts.
Bitcoin Plunges to $66,000 Before Partial Recovery
Bitcoin’s price briefly dropped to $66,000, down from its all-time high of $73,500, resulting in over $240 million in liquidated positions. Long liquidations accounted for $190 million, with Bitcoin alone seeing $88.43 million in total liquidations, the largest since March 19.
Read More: The Market News Today: JOLTS Survey Forecasts Dip in Job Openings