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 gains moderately in Asia
On Monday, gold prices added moderately in Asia, with the focus ahead on Fed officials’ comments this week.
In New York, April delivery gold futures soared 0.02%, trading at $1,230.40 a troy ounce. Meanwhile, copper futures reached $2.680 a pound with operations at major mines in Chile and Indonesia in focus as negotiations on wages and regulations continue.
This week the market awaits Fed officials, including Chair Janet Yellen. Traders want more clues on the timing of the next American rate lift and also eye data on inflation from Great Britain as well as euro zone polls on business activity as the UK braces for Brexit. On Monday, Japanese markets are shut for a holiday.
The previous week, gold prices inched up on Friday as expectations of a slower pace of American interest rates lifts than some market participants had anticipated kept weighing on the major US currency.
However, the Fed didn’t flag any plan to speed up the overall pace of monetary tightening, with Yellen repeating that the pace of rate lifts would be gradual.
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.