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Gold ascends on safe-haven demand
On Thursday, gold surged in mid-morning trade because the safe-haven metal finally caused buyer interest in the face of US-China trade fears, while a weaker-than-anticipated result on job creation also assisted to soothe concerns over a faster tempo of rate lifts from the key US bank.
December delivery gold futures rallied by 0.70% on the Comex exchange being worth $1,210.60 a troy ounce.
Estimating the greenback’s purchasing power versus its key rivals the USD index dipped by 0.16% being worth 94.92.
Apparently, the softer greenback backed gold, although markets’ focus was still centered on the US - China trade clashes against the backdrop of worries that an escalation could be inevitable.
American leader could impose duties on an extra $200 billion worth of China’s products when a public consultation period is over.
China has warned that it’s going to adequately respond if America slaps fresh levies on its products.
The private payroll processor ADP informed that in August America generated just 163,000 jobs, which is quite below the 191,000 positions anticipated in the official government data out Friday.
The worse-than-anticipated outcome assisted to relieve fears that the major US bank could take a more hawkish stance on policy tightening.
Financial markets already expect the key US bank to have interest rates lifted by a quarter point at the next policy gathering on September 25-26.
Higher interest rates tend to put pressure on demand for the number one precious commodity. It definitely backs yield-bearing investments.
As for other metals, silver futures managed to rally by 0.28% hitting $14.260 a troy ounce.
Besides this, palladium futures managed to rally by up to 0.53% being worth $960.70 an ounce. As for platinum futures, they gained 1.12% demonstrating $793.10.
As for copper, this commodity jumped by 1.57% coming up with $2.651 a pound.
The market sentiment deteriorated because of the election uncertainty and worries about rising virus cases all over the world. Let's make some analysis!
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.