Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold edges up on Trump’s remarks
On Friday, the leading precious commodity rallied, thus offsetting some of its weekly losses because Trump’s remarks about Fed rates and the evergreen buck put pressure on the US currency.
August delivery gold futures went up by 0.6% trading at $1,231.10 an ounce. On Tuesday, the contract hit about $1,224, which is the lowest value since July 2017.
As for the SPDR Gold Shares exchange-traded fund GLD, it rallied by 0.7%.
Meanwhile, the USD index slumped by 0.7%. The USD index, assessing half-dozen counterparts, normally moves opposite greenback-denominated gold. In general, the US currency has enjoyed this year’s rebound due to the fact that market participants have turned to America as a trustworthy source of safety during hard times.
Some experts are assured that such factors as immediate interest-rate policy as well as the risk of trade conflict don’t undermine the every function of gold as a reliable asset. US leader told he was ready to slap duties on all China’s products imported to America.
Some market experts are assured that the medium-term outlook for the number one precious commodity is quite upbeat because they expect the key US bank to cease lifting rates next year. The American economy is also anticipated to speed down in 2019 that coupled with lower revenues as well as a weaker greenback would most likely underpin gold.
In addition to this, September delivery silver futures managed to ascend approximately 1% being worth $15.549 an ounce. On Thursday, the contract slumped more than 1% hitting $15.402 an ounce, which is the lowest value since late 2016. Moreover, it faced a 1.7% weekly tumble. Besides this, for the week the iShares Silver Trust SLV headed south 1.9%.
September delivery copper futures ascended 2.2% demonstrating an outcome of $2.756 a pound, having reached $2.696 a pound on Thursday.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.