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 surges in Asia in cautious trade
On Tuesday, gold rose in Asia in cautious trade, with Chinese and Indian markets unavailable for holidays, thus putting the world's number one gold importers on the sidelines. Traders are cautious ahead of a gathering this week between China's President Xi Jinping and US President Donald Trump in Florida seen as high stakes on trade as well as geopolitical tensions in Asia.
In New York, April delivery gold futures soared 0.35%, trading at $1,258.45 a troy ounce. As for silver futures, they added 0.55%, showing $18.312 a troy ounce, copper futures rallied 0.12%, trading at $2.609 a pound.
Overnight, gold held firm, following the issue of mixed economic data while a softer greenback limited selling pressure on the number one precious metal.
Gold managed to revive from a sag earlier during the trading session, after March construction spending turned to be dismal, while economic activity in the manufacturing sector dropped less than expected.
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.