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Gold heads south to year’s low
On Tuesday, gold slumped because worries over a potential trade conflict made traders look for refuge in the greenback, raising a benchmark index for the US currency to its highest value of 2018.
The number one precious commodity got to its lowest value of this year notwithstanding soaring trade tensions affecting financial markets and leaving market participants on edge.
August delivery gold futures headed south by 0.3% displaying a reading of $1,276.50 an ounce.
As the trade conflict between the United States and China can strengthen, market sentiment among investors is getting darker. As a result, stock markets are going down, cyclical commodities, including base metals have found themselves under pressure.
Trade developments brought equities steeply down, and some financial experts have told that gold selling might be utilized for the purpose of generating returns and compensating losses in so-called risk-on markets. However, the developments also spurred the evergreen buck that doesn’t tend to move inversely versus the number one precious metal.
In addition to this, the ICE US Dollar Index DXY, a traditional gauge of the evergreen buck versus a half-dozen key rivals, managed to ascend by 0.3% hitting 95.10, demonstrating 2018 maximums.
The growing US-China trade feud also put pressure on prices for industrial commodities.
As a matter of fact, July delivery silver futures went down by 0.8% being worth $16.31 an ounce, moving towards the lowest value since mid-May.
Meanwhile, July delivery copper futures headed south by 1.5% trading at $3.061 a pound. This commodity was just one point close to a three-week dip at $6,838.50 on the London Metal Exchange.
Besides this, July delivery platinum futures sank by 2.2% coming up with an outcome of $864.20 an ounce. At the same time September delivery palladium futures demonstrated a reading of $967.390 an ounce, losing 1.5%.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.