The shining metal breaks above $1,760. How soon the 2012 heights may be beaten?
Gold keeps diving amid geopolitical instability
On Tuesday, gold descended in the face of political instability in Europe, which keeps generating fears of investors around the globe. The White House reported that it was about to impose tariffs on Chinese goods.
June delivery gold futures slumped by 0.54% being worth $1296.6 per troy ounce.
The ascend in prices for the number one precious commodity is hampered by the political meltdown in Italy and also by a vote of no confidence in the government of Prime Minister Mariano Rajoy in the Spanish legislative body.
At the weekend, Italian populist parties rejected plans to create a coalition government right after Italian President Sergio Mattarella decided not to approve the Eurosceptic candidate proposed by these parties for the post of Minister of Economy and Finance. Moreover, the ex-IMF statesman, Carlo Cottarelli, was ordered to create a new Italian government. Besides this, early parliamentary elections are anticipated to burst out in August.
In addition to this, a vote will burst out in Spain. It will have to do with no confidence in the government of this European country because of allegations of corruption of officials closely connected with the ruling party of Spain.
In the United States, President Donald Trump approached the introduction of trade as well as investment restrictions against China. To be exact, he considered the introduction of tariffs on Chinese goods worth $50 billion.
Prices for the most popular precious commodity edged down because of the appreciation of the evergreen buck.
The US dollar index, traditionally employed to gauge the purchasing power of the American currency versus its six rivals, kept to a maximum for five months - 94.65.
Silver futures went down 0.94% being worth $16,395 per troy ounce. Besides this, platinum managed to tack on 0.67% coming up with $907.3.
Let’s look at main movements on the market.
Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
The Reserve Bank of Australia will make a statement and release the cash rate on Tuesday, June 2, at 8:30 MT time.