On Monday, gold headed south because Turkey’s economic turmoil left financial markets puzzled…
Gold jumps on safe-haven demand
On Friday, gold leapt because market participants rushed to safe-have assets. Meanwhile, American leader came up with higher duties on Turkey.
December delivery gold futures rallied by 0.13% on the Comex exchange hitting $1,213.93 a troy ounce.
On Twitter Donald Trump wrote that he has just ordered to double duties on Turkish aluminum and steel because their national currency, the Turkish lira goes down abruptly versus the greenback. As US leader told, from this moment the duty on aluminum will account for 20%, and the duty on steel would ascend to 50%. Trump confessed that America’s relations with Turkey are bad now.
The president’s statement affected markets and the selloff in Turkey’s currency depended – it headed south by 20% versus the evergreen buck hitting an intraday minimum.
The stock markets were affected, especially in the European Union, where investors were concerned over financial institutions’ exposure to Turkey.
However, the risk-off sentiment affected American equities too because traders decided to shift to safe-haven assets, including gold.
Capping profits in the number one precious commodity was an ascending greenback – this currency managed to soar to a 14-month maximum versus its key counterparts.
Inflation data gave rather a mixed picture because the headline consumer price index suddenly stood still at 2.9%, although the core reading, excluding energy and food demonstrated a shocking 2.4% acceleration.
The data actually backs the case for the key US bank to move ahead with its initiative to have interest rates lifted twice more in 2018. Soaring interest rates affect demand for the most popular precious metal.
As for other metals, silver futures tacked on by 0.60% being worth $15.370 a troy ounce.
Palladium futures tacked on by 0.51% hitting $903.00 an ounce. As for platinum, it sank by 0.05% reaching $833.70.
Copper futures dipped by 0.20% demonstrating $2.760 a pound.
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