Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
Copper declines as Indonesia's Grasberg mine resumes output
On Tuesday, copper prices tumbled in Asia, as a strike at a major Indonesian mine has ended.
Reuters informed that Freeport McMoRan's Indonesian unit has already resumed its copper production at its Grasberg mine. Currently, traders are paying attention to a weeks-long strike in Chile at the Escondida copper mine owned by Australia's BHP Billiton.
In New York, May delivery copper futures dipped 1.02%, trading at $2.628 a pound on the news.
Additionally, April delivery gold futures sagged 0.46%, trading at $1,228,35 a troy ounce.
Overnight, gold dipped, backed by a tumble in the greenback, which is on track for the fourth session of drops, after G20 financial leaders didn’t manage to make a case for open and free global trade. Besides this, more dovish than expected Fed comments as for rate lifts kept backing the number one precious metal.
By the way, a tumble in the greenback also backed gold, as this commodity is dollar denominated.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.