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Gold is nearly intact ahead of the G7 summit
On Friday, gold was nearly intact as market participants were waiting for the start of the highly anticipated G7 summit.
August delivery gold futures slumped 0.03% on the Comex exchange being worth $1302.60 per troy ounce.
In the absence of crucial economic reports, the attention of investors will be focused on the G7 leaders meeting to be held today in Canada, Quebec. Germany and France warned the United States that they wouldn’t sign a joint statement without any concessions from America. However, this week, the US chief economic adviser Larry Kadlow told that US President is reluctant to change his tough attitude to international trade.
A family quarrel – that’s how Kadlow characterized the situation. At the G7 summit Trump is expected to hold tete-a-tete negotiations with the leaders of Canada, Japan and France.
By Thursday evening, US leader hadn’t made any steps toward reconciliation. On the contrary, he dared to accuse Canada and France of creating non-monetary barriers and imposing high tariffs on US goods.
Besides this, traders will also pay much attention to the approaching negotiations between Trump and North Korea's dictator Kim Jong-no, which should take place on June 12 in Singapore. Donald Trump told on Thursday that he was about to sign an official document to stop the Korean War at a gathering with North Korean leader Kim Jong-no. Moreover, he admitted that Kim Jong-un could come to the White House.
Changes in tensions between the US and North Korea impact the value of the number one precious commodity.
Additionally, next week investors will also pay attention to the monetary policy of the Federal Reserve as well as the European Central Bank.
As for other precious metals, silver futures dived by 0.6% on the Comex exchange hitting $16.715 per troy ounce.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.