Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold goes up on weaker greenback
On Tuesday, the yellow metal managed to surge in Asia. It became possible due to the fact that the evergreen buck went down on easing US-China trade fears.
As a matter of fact, on the Comex exchange, February delivery gold futures inched up by up to 0.3% ending up with a reading of $1,242.9 a troy ounce.
In addition to this, tracking the evergreen buck versus a group of other key currencies the USD index was last seen at 96.667, heading south by nearly 0.31%.
The index inched down right after American leader Donald Trump and his Chinese opponent Xi Jinping pledged to stop the introduction of new levies for up to 90 days. That’s what Chinese Foreign Minister Wang Yi informed.
The evergreen buck also lost its upward momentum for the last time on dovish signs from the Federal Reserve that has indicated a probable pause in interest rate lifts after a widely-anticipated December lift.
A number of financial analysts pointed out that the yellow metal is currently less worried about the major US financial institution and it’s starting to notice inflationary signs from agriculture, crude as well as non-tariffs.
Nevertheless, other experts were still skeptical that bullion prices would keep getting a firm bid in the nearest future.
Currently, the big question on everybody’s mind is what investors should do with the number one precious commodity.
Some experts are assured that there will be a considerable sell-off in the USD Index after the news. They don’t actually expect the price of the yellow metal to demonstrate a sustained leap at this time.
The evergreen buck dived to more than one-week minimums versus the Japanese yen. The currency pair USD/JPY dived by 0.62% being worth 112.96.
The currency pair GBP/USD surged by 0.39% being worth 1.2772.
The market sentiment deteriorated because of the election uncertainty and worries about rising virus cases all over the world. Let's make some analysis!
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.