On Friday, gold declined, simultaneously trying to preserve its weekly profits because the USD index jumped, offsetting its abrupt weekly dive…
Gold goes down due to receding geopolitical risks and strengthening greenback
On Monday, gold kept close to the recent minimum for five weeks amid a dive in geopolitical tensions, a rise in the evergreen buck as well as a dive in demand for the number one precious metal.
On the Comex exchange June delivery gold futures dived by 0.38% hitting $1318.3 a troy ounce, approaching the Thursday's minimum of five weeks at $1315.70.
Demand for gold slumped amid weakening geopolitical tensions on the Korean peninsula.
The US currency rallied after Friday’s dive. The US dollar index, evaluating the purchasing power of the American dollar against six key currencies, tacked on by 0.19% being worth 91.48.
As a rule, the appreciation of the American dollar makes the number one precious metal less accessible to keepers of other currencies.
The previous week, the US dollar index rallied 1.37% due to the surge in yield of US government bonds and also the prospects for accelerating the Fed's interest rate lift in 2018.
The evergreen buck was backed after the previous week's revenue of 10-year US government bonds beat the psychologically important level of 3% for the first time since 2014 that strengthened forecasts of inflation surge.
At the time of writing, the yield of US ten-year bonds inched down and ended up with a reading of 2.964%.
The recent increase in profitability generated investors’ fears of accelerating of the pace of interest rate hike, which makes the profit-making gold less attractive to market participants.
Investors' attention is focused on the forthcoming gathering of the Federal Reserve this week as well as a report on employment in America for April, which is going to be released on Friday.
According to forecasts of most market experts, as an outcome of its two-day gathering on Wednesday, the Federal Reserve is going to keep the interest rate intact after its lift in March.
On Thursday, gold declined notwithstanding a weakening evergreen buck in the face of ebbing trade fears, as market participants waited for economic data later in the trading session and also looked ahead to the Fed’s policy gathering next week…
On Monday, gold managed to surge due to the fact market participants questioned the greenback jump’s near-term durability…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…