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 stands still as RBA holds steady as expected
On Tuesday, gold jumped, with traders holding positions ahead of the British election on Thursday as well as testimony to Congress by the sacked FBI chief, which could potentially affect the Trump administration's further plans for economic reforms.
August delivery gold futures added 0.35% in New York, showing $1,287.16 a troy ounce.
Japan posted that in April average cash earnings earned 0.5%, compared with a 0.3% revenue observed year-on-year.
Overnight, gold drifted away from six-week peaks because safe-haven demand declined notwithstanding renewed geopolitical tensions as well as a bunch of risk events later during the week, which could generate turmoil in markets.
Gold reached a six-week peak during earlier trade, following new geopolitical tensions in the Middle East after Egypt, Saudi Arabia, Bahrain as well as the United Arab Emirates dared to accuse Qatar of terrorism. All of them snapped diplomatic and other ties with Qatar.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.