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Metals edge up on diving greenback
On Monday, metals made an upbeat start to the week, underpinned by a weaker greenback, although data disclosed that market participants ramped up their downside bets on the most popular precious commodity on hopes for further lifts in American interest rates.
December delivery gold futures added 0.01% on the Comex exchange being worth $1,200.50 a troy ounce.
The greenback’s dive intraday minimums didn’t manage to inject a meaningful soar in investor appetite to ramp up exposure to gold as the fresh round of upbeat American economic data, with the mostly bullish jobs report on Friday, has reassured market participants that the American economy is still on firm footing, thus strengthening the prospect of further rate lifts.
Tracking the purchasing potential of the greenback versus its primary counterparts the USD index went down by 0.29% hitting 95.10.
In a soaring interest rate environment, appetite for gold goes down due to the fact that the opportunity cost of holding the yellow commodity heads north relative to other interest-bearing assets, including bonds.
On Friday, gold reported a second losing week, notwithstanding America threating to slap another round of levies on China. The yellow metal’s safe-haven status has become uncertain for the last time because market participants have seemingly wanted to back the US currency on hopes that in a full-blown global trade conflict, the strength of the American economy will strengthen.
American leader demonstrated his readiness to slap extra levies on China’s products in the nearer future, warning of another $267 billion at hand.
According to CFTC COT data, money managers ramped up their net short positions in gold to about 13,500 lots versus 3,100 lots by September 7.
Copper ascended by 0.13% hitting $2.63, zinc sank by 1.33% trading at 2,371.75.
Silver futures added 0.28% demonstrating $14.21 a troy ounce.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…