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Gold sector stocks fell in morning trading

Tiger Newspress2021-06-17

Gold sector stocks fell in morning trading,GOLD and RGLD shares tumbled nearly 3%,KGC shares dropped more than 4%.

Gold slumped below $1,800 an ounce as the Federal Reserve sped up its expected pace of policy tightening amid optimism about the labor market and heightened concerns over inflation.

The metal slipped to the lowest in six weeks on Thursday as the dollar continued to strengthen, the day after Fed Chair Jerome Powell said the central bank would begin a discussion about scaling back bond purchases. It’s the first major hawkish turn from the central bank whose deluge of stimulus has been critical to bullion’s strong performance since the start of the pandemic.

The central bank also released forecasts that show it anticipates two interest-rate increases by the end of 2023 -- sooner than many thought -- which helped boost the dollar and U.S. bond yields, hurting gold. Bullion, which declined the most in five months on Wednesday, broke through a number of key technical support levels, including falling below its 100-day moving average.

“We have a negative outlook, expecting gold to fall to $1,600 an ounce over the next six to 12 months,” said Giovanni Staunovo, an analyst at UBS Group AG. “At some point the Fed will not talk about taper but also implement it.”

Spot gold declined 1.7% to $1,780.97 an ounce as of 2:07 p.m. in London, after earlier dropping to $1,776.08, the lowest intraday level since May 5. Silver, platinum and palladium also declined. The Bloomberg Dollar Spot Index gained 0.5% after rising 0.9% on Wednesday.

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Comment54

  • WCS1981
    ·2021-06-21
    Fall to $1600 on the next 6 to 12 months? ? what are your views? I wanted to average down, butif this is true, should hold off for the time being?
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  • Erikca
    ·2021-06-18
    Cool
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  • Ruzzer
    ·2021-06-18
    Good
    Reply
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  • ksteo
    ·2021-06-18
    Hello
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  • ksteo
    ·2021-06-18
    Hello
    Reply
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  • IZLIN
    ·2021-06-18
    Reply
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    • Sagi08
      Ok
      2021-06-19
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  • PotterHeads
    ·2021-06-18
    Bull?
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  • 梁娜娜本人
    ·2021-06-18
    Ok
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  • gupzbajaj
    ·2021-06-18
    Weird situation indeed
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  • joeyong
    ·2021-06-18
    ok
    Reply
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  • Jyingyang
    ·2021-06-18
    Poor gold, no such thing as inflation now
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    • tkj
      I guess knee jerk reaction. there are still a lot of monies in the economies. inflation will come....perhaps time to buy some gold
      2021-06-20
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  • doje
    ·2021-06-18
    Wow
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  • Ericgil
    ·2021-06-18
    Hmmmm
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  • Vomous
    ·2021-06-18
    Basel 3 will change this trend. Accumulate 
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  • Bag1
    ·2021-06-18
    ??
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  • CFloe
    ·2021-06-17
    Its time
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  • rosemary2288
    ·2021-06-17
    Time to accumulate
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    • Tchua
      Did
      2021-06-25
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    • Tchua
      Yes a bit
      2021-06-20
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  • cheffun
    ·2021-06-17
    Buy more
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  • cheffun
    ·2021-06-17
    Good new 
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  • LplMichelle
    ·2021-06-17
    Please help my comment and feature it
    Reply
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