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 jumps in Asia as NKorea edges back on Guam threat
On Tuesday, gold grew in Asia because North Korea backed away from threats to launch missiles at the US territory Guam, while the evergreen buck demonstrated a moderate revival from recent weakness.
December delivery gold futures ascended 0.75% in New York being worth $1,280.66 a troy ounce.
Overnight, the precious commodity retreated from two-month maximums because risk appetite got back after tensions relieved between American and North Korea, after comments from American officials downplaying the probability of war on the Korean peninsula.
Gold prices declined from two-month maximums because market participants appreciated comments from US Defense Secretary Jim Mattis as well as Secretary of State Rex Tillerson both downplaying the risk of a fierce war conflict on the Korean peninsula.
However, losses in the number one precious commodity were limited because market sentiment on tighter monetary policy was still subdued, reacting to data on Friday disclosing the slowdown in inflation kept unrolling in July.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.