Gold near two-month low on surprise rate hikes in Australia, Canada

Conditions are hinting at a challenging environment for gold, with various factors weighing on international prices.

Manisha Gupta

June 08, 2023 / 15:09 IST

Gold prices slip to near 2 month low, below $1950 an ounce

Gold prices have slipped to a nearly two-month low, trading below $1950 per ounce, coming under pressure due to unexpected rate hikes in Australia and Canada. Additionally, the strength of the USD and Treasury yields continues to weigh on the precious metal.

According to the MetalFocus Report, gold demand is expected to decline by 9% in 2023. Central banks, after a record-buying spree in 2022, have slowed down their purchases. On the supply side, gold supply is estimated to grow by 2%, leading to a surplus of 500 tons.

Despite these factors, the annual average price of gold is projected to rise by 5% to reach an all-time high of $1890 per ounce. So far in 2023, gold prices have already climbed by 7%.

The current market conditions indicate a challenging environment for gold, with various factors contributing to its decline. However, the projected rise in the annual average price suggests a potential turnaround in the future. Investors will closely monitor developments to gauge the direction of gold prices going forward.

Since mid-May, prices have been confined within the range of $1930 to $1980, showing a lack of significant movement.