Gold reaches new high
The price for the yellow metal has crossed the level at $1,341.
Gold drops amid relieving tension in trade relations
On Thursday, gold tumbled after the return of demand for risky assets. Market participants made up their mind that the recent exchange of imposing duties between the US and China can be regarded as a tactic for negotiating, while both countries will eventually come to a compromise.
June delivery gold futures dived 0.75% on the Comex exchange coming up with $ 1,330.0 per troy ounce.
On Wednesday, prices for the most popular precious commodity rose to a weekly high after China announced a fresh portion of duties on imports of goods from the United States in response to the plans of the Trump administration to introduce import duties on Chinese goods.
Fears that protectionist policies could end up with a full-scale trade conflict, led to a jump in demand for protective assets, such as gold for example.
However, tensions in international trade relieved after on Wednesday US economic adviser Lawrence Kadlow announced that duties on Chinese goods might not enter into force. He also said that there aren’t any trade clashes between the US and China.
The sentiments of market players also improved amid forecasts that the US could reach an agreement with Canada and Mexico on the issue of renegotiating the North American Free Trade Agreement.
The US dollar index, which displays the purchasing power of the evergreen buck to the trade-weighted basket of six major rivals, tacked on 0.18% showing 107.09.
The demand for gold is growing during geopolitical tensions or instability in the financial markets, and the surge of the evergreen buck makes the commodity traded in that currency more expensive for keepers of other currencies.
Investors shifted their attention to a new report on employment in the US as well as the speech of the head of the Fed, Jerome Powell, scheduled for Friday. Apparently, Powell's statements might affect the rate of the US currency.
Similar
5 important events this week will bring us!
Find out the main drivers for this week
Prices for oil rise
The price for WTI has risen to its highest levels since the beginning of May.
Latest news
British inflation tacks on for the first time this year
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
Evergreen buck heads north
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
Gold sinks on soaring greenback
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums…
Deposit with your local payment systems
