Observing news today one can easily get disappointed. However, things are getting better.
Gold heads south
On Tuesday, the yellow metal slumped in Asia due to the fact stocks revived having dived yesterday on American leader’s threat to increase levies on Chinese goods.
On the Comex exchange, June delivery gold futures headed south by about 0.1% ending up with $1,282.85 per ounce.
The yellow metal gained some support in the previous trading session as Asian stocks went down, with Chinese shares slumped over 5%, right after Trump told he wasn’t satisfied with the progress in trade negotiations with China and that America will ramp up levies on $200 billion worth of China’s goods from 10% to 25% this Friday.
Gold is often utilized by market participants when it comes to hedging against economic as well as political instability.
As some financial analysts pointed out, there are considerable drivers for the yellow metal with the escalation on the trade war front yesterday, although it’s weird they haven’t observed an enormous follow through.
Some traders are also paying attention to the tensions in the Middle East. The two drivers are sufficient to hold prices, although there’s a general reluctance to make prices overleap $1,285.
Today, Asian equities managed to recover after reports told that a China-U.S. trade deal is still not off the table. By the way, American Trade Representative Robert Lighthizer told that Chinese Vice Premier Liu He will proceed with leading a delegation to go to America for trade negotiations this week.
Remarks from Treasury Secretary Steven Mnuchin who told that America would reconsider the levies if negotiations get back on track backed hopes that the two leading economies might still be able to come to a compromise.
XAU/USD reversed down from the $1,700 area and dropped to $1,586 on March 12.
Oil market crashed after OPEC+ didn’t agree on production cuts. What’s next? Let’s see what bank analysts have to say about this.
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
Jerome Powell made a rare appearance in the public media this Thursday. What did he bring to the audience?