Gold re-takes $1530 on risk sentiment

15 August, 2019

Gold re-takes $ 1530 as risk sentiment sours on fresh trade woes. Gold bounces back $ 1530 levels, upside remains more compelling. Risk hit on fresh China trade comments, 30-yr Treasury yields back below 2%. Focus shifts to US Retail Sales, Philly Fed Manufacturing and Industrial figures.

Gold (futures on Comex) see-sawed between gains and losses so far this Thursday, with the risk sentiment and demand for safe-havens playing a key role amid mounting US recession risks and ongoing US-China trade tensions.

US-China Trade Woes Loom

The yellow metal picked up fresh bids last minutes after fresh comments from China hit the wires, re-igniting the US-China trade spat and denting the risk sentiment. The demand for the safe-haven gold was back on the rise, as investors flocked to safety at the expense of Treasury yields, equities etc.

Gold prices retreated from the recent highs in the overnight trades, as markets witnessed a shift in the risk mood, with a recovery in the US equity futures and Treasury yields after Wednesday’s turmoil. The 30-year Treasury yields regained the 2% mark, having fallen to record lows below the last in early Asia.  

The US 2-year-10-year Treasury yield curve inverted a day before and fuelled worries over an upcoming recession, sending the stocks and yields collapsing. The 30-year Treasury yields fell to a record low below 2%.

In another evidence of increased investors’ confidence in the precious metal, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.9% to 844.29 tonnes on Wednesday., as cited by Reuters.

Attention now turns towards the US macro releases for fresh signs on the US economic situation that could direct fresh moves in the precious metal. Until then, the risk flows will continue to have a major influence on the prices.

Source link  
Gold bounces off multi-week lows

Trade jitters lift safe havens, Gold, Silver. Still no decision on rolling over tariffs. Gold targets the 100-day SMA near $1,480. The resurgence of trade...

Gold recovers farther from 1-month lows

Positive trade headlines exerted some heavy downward pressure on Thursday. Conflicting reports helped limit further losses, rather regain some...

GBP/JPY plummets to fresh 6-month lows

Persistent Brexit-related uncertainties continue to weigh on the British Pound. Upbeat UK wage growth figures did little to lend support...

Gold sticks to modest gains around $1425

Persistent global trade worries continue to benefit the commodity's safe-haven status. A fresh leg of a downfall in the US bond yields...

USD longs extended by leveraged funds

According to the CFTC's positioning data for the week ending 11 June 2019, leveraged funds turned net USD buyers after four weeks of selling...

EUR/GBP recedes from recent highs

EUR/GBP keeps the positive note so far in the mid-0.8800s. After printing tops near 0.8870 on Friday, the cross recedes some ground. Uncertainty...

Gold eases from near 2-week tops

The global flight to safety continues to fuel the ongoing positive move. A goodish pickup in the US bond yields now seemed to cap further gains...

Gold stuck in tight range above $1290

Upbeat sentiment weighs on the precious metal. US Dollar Index retreats to 97 area. Coming up: ADP private sector employment and non-manufacturing...

GBP/USD drops sharply to 1.3080

Increased odds of no-deal Brexit, USD rebound knocks-off GBP/USD. All eyes remain on Brexit headlines, US macro data and EU Summit...


Share it on:   or