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 goes down in Asia
On Wednesday, gold sank in Asia, with markets waiting for Britain’s formal move to start a split from the European block later in the day.
In New York, April delivery gold futures tumbled 0.49%, trading at $1,249.50 a troy ounce. Meanwhile, silver futures slumped inched up 0.77%, trading at $18.248 per troy ounce. Besides this, copper futures hit $2.670 a pound.
Overnight, gold stood still, though remained close to one-month peaks, notwithstanding positive economic data and rate lift chatter from Fed officials.
Gold shrugged off a bounce in the greenback because jitters regarding Trump’s ability to push through his pro-growth economic agenda provided market participants with a reason to look for refuge in the number one precious metal, traditionally considered to be a safe haven asset.
Meanwhile, comments from Fed officials as for interest rate lifts kept surfacing because on Monday, both Chicago Fed President Charles Evans and Dallas Fed Bank President Robert Kaplan suggested that the Fed would continue on its monetary tightening policy.
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.