Gold prices continued their drop further in Wednesday’s early Asian trading session, sinking to around $3,315. The markets have been squarely focused on the upcoming most important releases of economic data from the U.S. This is adding to a growing and persistent negative mood on the markets.
When the gold market opened gold gradually moved lower trading lower prior to settlement at approximately $3,310. Some analysts believe that the uncertainty over coming US economic indicators is one reason for the precious metal’s jitters. Investors are glued to these unfolding developments. Depending on final design choices, they could disrupt existing market trends and drastically influence the direction of the Federal Reserve’s forthcoming monetary policy decisions.
The drop in gold prices is a part of a larger recent trend across all commodities. Market analysts note that currency values are often volatile, particularly the relative value of the US dollar. These changes are frequently in line with movements in gold prices. As the dollar strengthens, gold more generally becomes pricier for holders of other currencies, which can depress demand.
Market professionals have been apparent about why the upcoming US data drops are important. These are key inflation and employment reports that play a major role in determining investor sentiment about the future path of interest rates. A major uptick in these measures would force a reassessment of gold’s worth, pushing prices even deeper into bearish territory.