- Gold prices have fallen to the lowest level since December last year.
- The spot gold price has slid 7.8% since mid-April, largely reflecting renewed strength in the US dollar.
- Over the March quarter, the spot gold price has fallen 5%.
Gold has fallen to the lowest level this year, pressured by a stronger US dollar and a perceived lessening in trade tensions between the United States and China on Tuesday.
The spot gold price currently trades at $US1,258.51 an ounce, having fallen to $US1,254.16 earlier in the day, leaving it at its lowest level since December 18 last year.
As seen in the chart below, it’s been a tough few months for the precious metal, seeing it slide 7.8% since April 11.
Much of that reflects a stronger greenback over that period with the US dollar index, or DXY, rallying 7.6% since mid-February.
That’s helped to offset a recent decline in real US 10-year yields, something that has acted to support gold prices in the past, along with escalating trade tensions between the United States and other nations.
Given gold’s poor performance since the end of March, recent declines could also reflect the impact of quarter-end window dressing ahead of June 30.