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Gold sinks in Asia
On Friday, gold tumbled moderately in Asia because market participants searched for support from physical markets in India. As next month China will face a week-long holiday period, trade is expected to recede.
December delivery gold futures dipped 0.06% in New York being worth $1,287.88 a troy ounce.
Besides this next month India's festival season will burst out, with firm demand for physical gold.
Overnight, gold was nearly intact because the evergreen buck’s weakness capped downside momentum, although the precious metal was still under pressure amid investor hopes for a year-end interest rate lift.
Gold futures tried to cease the recent decline that has seen the number one precious commodity sag below $1,300, underpinned by a sink in the greenback that followed several mixed economic reports.
GDP inched up at a 3.1% annual rate during the April-June period, as the Commerce Department revealed in its third estimate on Thursday. It surpassed last estimate of 3%.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.