Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold sinks on soaring greenback
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums.
December delivery gold futures slumped by 0.5% coming up with an outcome of $1,217.50 an ounce.
In addition to this, September delivery silver futures declined by 0.7% reaching $15.355 an ounce.
Gold’s dip can be explained by the fact that the USD index ascended by 0.15%.
Trading in commodities has taken place in the face of a focus on global trade clashes that have underpinned the greenback and suppressed silver and gold.
China threatened to slap duties, varying from 5% to 25%, hitting $60 billion of American products. The tariffs would contribute to the current $50 billion in American products on which the Chinese government has already has slapped or told it would make this come true soon.
Besides this, the SPDR Gold Trust GLD headed south by 0.7%. At the same time, the iShares Silver Trust SLV posted a 0.3% dip.
In general, market sentiment is quite downbeat, as some market experts pointed out. They added that silver might be demonstrating some signs of turning a corner having dived along with gold. However, market experts stressed that silver would be capable of following through on some moderate upward momentum.
Other market experts drew attention to the fact that the entire precious metals space has turned out to be a very difficult area. They referred to pressure on prices, which have been dominating the sector of commodities.
In addition to this, September delivery copper futures went down by 1.2% hitting $2.731 a pound, having lost about 1.4% the previous week. October delivery platinum futures declined by 0.4% hitting $833.70 an ounce, having slumped by 0.6% for a week.
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.