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 grows moderately in Asia
On Friday, gold reported moderate profits in Asia, with eyes on China’s economic data.
In New York, June delivery gold futures soared 0.04%, trading at $1,256.88.
Overnight, gold stood still, after the Fed’s May gathering minutes, drove worries over whether the major US financial institution would keep pursuing its initiative to introduce two extra rate lifts in 2017.
The hawkish view that a rate lift was urgently required soon was compensated by comments from some Fed officials at the gathering, who told that further signs would require showing that weakness in the first-quarter happened to be temporary, before future rate lifts.
American economic surge, gauged by GDP, inched up by annualized rate of nearly 0.7% for the first three months of this year. It turned to be the slowest period of first-quarter economic surge since 2014.
A surge in the greenback applied pressure on gold that sank to session minimums, reacting to initial jobless claim data, thus boosting a view that the US economy keeps demonstrating signs of a rebound in the second quarter.
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.