Observing news today one can easily get disappointed. However, things are getting better.
Gold rebounds modestly in Asia on recent profit-taking
On Wednesday, gold rebounded in Asia because market participants saw recent dips on a stasis in tensions on the Korean peninsula. They just saw a chance to buy. Another factor is that the Indian festival season gets closer.
December delivery gold futures rallied 0.33% hitting $1,337.04 a troy ounce in New York.
Overnight, the number one commodity declined below break-even. It’s because easing US-North Korea tensions powered demand for riskier assets bringing global equities to record maximums for a second straight day.
The relief soar continued for a second straight day, thus decreasing demand for safe-haven gold because market participants simply shrugged off new threats from North Korea after the United Nations dared to impose a fresh bunch of sanctions, limiting the isolated country’s access to crude imports, while restricting textile exports.
Also suppressing gold prices was a steep surge in American treasury yields ahead of inflation reports due on Wednesday that could impact the Fed’s interest rate verdict slated for September 20.
XAU/USD reversed down from the $1,700 area and dropped to $1,586 on March 12.
Oil market crashed after OPEC+ didn’t agree on production cuts. What’s next? Let’s see what bank analysts have to say about this.
Moody’s downgraded the country to ‘junk’ status on Friday.
The US economy has been hit hard by the coronavirus outbreak.
The United States will publish ISM manufacturing PMI on April 1, at 17:00 MT time.