Gold Lower in Thin Trade Holiday Trade Despite Dollar Drop COMMODITIES: Gold Lower in Thin Trade Holiday Trade Despite Dollar Drop
08:41 AM EDT, 05/25/2020 (MT Newswires) -- Gold traded lower in thin holiday trade despite a weaker U.S. dollar.
Gold for June delivery was last seen down US$8.30 to US$1,745.20 per ounce in Comex electronic trade.
The drop is being seen as a minor price correction, with a long term rising trend for the metal expected as nations add debt and cut interest rates to cope with economic disruptions from pandemic quarantines.
"For as long as gold holds its own above the $1,700 mark, we believe that the price is merely taking a breather within an intact upwards trend. Only if it were to dip below this threshold would any prolonged correction phase be likely. There is little to suggest that this will happen at the moment, however," Commerzbank analyst Carsten Fritsch said in a note.
The U.S. dollar was lower, making the metal more affordable for international buyers. The ICE dollar index was last seen down 0.14 to 99.72 points.