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.
Gold ascends a bit sticking to $1275 on weaker greenback
On Friday, after yesterday's decline to near a three-week minimum, gold seems to have steadied and held with minor revenues through the Asian trading session.
A steep ascend in the American Treasury bond yields, underpinned by mostly in-line core PCE price index, provoked an abrupt dive around the non-yielding commodity.
A fresh wave of the greenback selling bias, powered by renewed worries over the fate of Donald Trump’s proposed tax cuts, gave some support to gold and helped to rebound from dips.
A follow-through USD weakness in addition to a considerable slowdown in China's manufacturing activity gave some extra support to the number one precious metal.
Notwithstanding the supporting factors, resilient American bond yields continued exerting some downward pressure, keeping a lid on any significant up-move for gold.
The US ISM manufacturing PMI along with speeches by influential FOMC member are expected to influence gold’s movement a bit later on the last day of this trading week.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...