Gold Falls for 7 Days Straight: What’s Next?

Gold futures for June expiration saw another day of losses, falling by ~$4 and closing at $1,222.7 per ounce on May 26, 2016. However, gold’s fall didn’t extend to other precious metals. Though gold fell by 0.28% on May 26, silver, platinum, and palladium saw rises of 0.51%, 0.1%, and 2.5%, respectively, on the day.

Precious metals have all seen price falls over the past week. Gold’s monthly returns are negative. Since the beginning of 2016, May has been the worst month for precious metals, most likely due the stronger US dollar. The strength of the US dollar often weakens dollar-denominated assets, since it’s more expensive for the buyers with other currencies to invest in the dollar for the purchase of dollar-based assets.

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