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Yellow metal breaks below $1,200 once again
Anxiety over the US-China trade conflict and Brexit is keeping the yellow metal’s $1,200 perch alive, notwithstanding the evergreen buck trying to gain leverage against gold on the same fears.
Skittish trading in American equities was also helping bullion fans to stay with the precious commodity because October's rout in global stocks as well as gold's leap to four-month maximums are still recalled by them. The Dow dived by 0.8%, paring early profits because Apple became a top diver in tech equities.
The yellow metal also got a powerful boost from the rebound in crude.
Chinese leader Xi Jinping and his US counterpart are scheduled to meet at the G20 summit in Argentina in two weeks with the aim of striking a deal to reduce levies on about $360 billion worth of products flowing between the two leading economies.
As for Brexit, UK Prime Minister Theresa May gained approval for a draft pact on Britain’s withdrawal from the EU after a five-hour gathering with her cabinet colleagues.
These fears backed the yellow metal, pulling this commodity up at Wednesday's close after it waded in earlier session to below the $1,200 mark.
December delivery gold futures rallied by 0.7% hitting $1,201.10 having reached 1,215.40 earlier. The session minimum amounted to $1,198.10 per ounce. Traders guess the next resistance level for December delivery gold futures would be at $1,212.
A gauge for the US currency versus its six rivals the USD index dived on the day having approached this week’s 16-month maximum.
Among other precious metals, silver managed to ascend by 1.3% being worth $14.13 per ounce having reached $13.85, which is its lowest outcome since January 21, 2016.
As for palladium, it added 1.7 % trading at $1,110.70 per ounce. Platinum futures dived by 0.2% trading at $839.70.
Copper futures rallied by 0.7% showing $2.705 per pound.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.