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Gold goes down as greenback surges
On Friday, gold inched down in Asia notwithstanding resumed China-US tensions. A strengthening evergreen buck was cited as a headwind for the number one precious commodity.
On the Comex exchange, gold futures managed to reach an outcome of $1,312.90, heading south by about 0.1%.
In addition to this, the USD index, normally utilized to gauge the greenback’s actual purchasing potential versus a group of other rivals, managed to ascend to a two-week maximum on Friday. As a matter of fact, the USD index last demonstrated an outcome of 96.345, heading north by up to 0.1%.
Notwithstanding today’s dive, gold prices have managed to tack on by up to 13% since hitting 1-1/2-year minimums in August. A weaker evergreen buck, volatile stock markets, to say nothing of a dovish stance pursued by the Federal Reserve – these are all factors supposed to be backing the yellow metal.
On Thursday, American leader told that he isn’t going to meet his Chinese rival Xi Jinping before their mutual March 1 deadline to come to a compromise, thus driving uncertainties over the trade agreement between the two leading economies.
His remarks showed up right after this week Lawrence Kudlow Traders, White House advisor revealed to Fox news that 'sizable distance' is still in US-China trade negotiations. On Thursday, gold managed to ascend reacting to Kudlow’s remarks, although gave up some of its profits today.
By the way, US leader came up with a threat to ramp up American levies on China’s goods if the two trading partners fail to come to a compromise before the March deadline. Another round of negotiations is expected to take place in Beijing next week.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!