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Yellow metal heads south
Every positive remark about US-China trade negotiations is putting pressure on gold bugs, complicating their rebound to the $1,300 level.
On the Comex exchange, April delivery golf futures dived by 1% being worth $1,287.50 per ounce, tumbling for six days in a row. On Friday, the yellow metal slumped below $1,300.
As for spot gold, it headed south by 0.5% ending up with $1,287.44 per ounce.
In the latest trading session, the yellow metal slumped because 10-year US Treasury gains rallied to six-week maximums of 2.77%. Higher gains make the number one precious commodity less attractive then safe-haven assets.
The evergreen buck managed to grow, contributing to the pressure on the most popular precious commodity.
Evaluating the purchasing potential of the US currency versus its primary peers the USD index surged by 0.2% being worth 96.60.
Earlier it scaled a near-two-week maximum of 96.748 because the evergreen buck resumed control of its narrative as the ideal hedge to the US-China clash. While some have counted on the yellow metal as a safe haven to the trade conflict, the evergreen buck has gained ground here.
Rival assets to the yellow metal headed north following a Bloomberg report that quoted a spokesman for China’s National People’s Congress who told that substantial progress has been achieved in trade talks with America for the last week.
Palladium inched down, its wide premium to the yellow metal retained its standing as the world's most expensive metal.
As a matter of fact, the spot price of palladium declined by 1.1% being worth 1,530.75 per ounce. By the way, on Wednesday, spot palladium managed to reach a record peak of $1,569.40 due to the fact that traders plowed into the auto-catalyst commodity because of its shrinking supplies.
Palladium futures declined by 1.3% hitting $1,486.90 per ounce.
As for silver futures, they decreased by showing $15.12 per ounce.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!