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 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%.
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.