Gold goes down on trade agreement

3 May, 2019

On Thursday, gold headed south, just a day after the major US bank stood pat on monetary policy and also hinted that interest rates would probably stand still for a longer period.

On the Comex exchange, June delivery gold futures headed south by about 0.7% concluding the trading session at $1,275.15 an ounce.

In a news conference, which followed Fed gathering, Fed Chair Jerome Powell told that Fed stance is quite adequate at the moment and they don’t see any reasons to move in either direction.

As for trade volumes, they were still thin due to the fact, financial markets in China and Japan were unavailable because of holidays.  

Moving in directions opposite to the yellow commodity and estimating the purchasing power of the greenback versus a number of its main rivals the USD index headed south by 0.1% ending up with 97.338.

In addition to this, a report posted by CNBC, which came up with a suggestion that China and the United States might announce a trade agreement next Friday also underpinned risk sentiment and put pressure on the yellow metal.

Besides this, another round of trade negotiations between China and the United States wrapped up in China’s capital on Wednesday with the American Treasury Secretary Steven Mnuchin calling those meetings quite fruitful.

Next week the everlasting trade talks will proceed in Washington. As follows from a number of anonymous sources, the two leading economies might manage to come to a compromise already by next Friday.

In addition to this, the evergreen buck tacked on a bit versus the Japanese yen, and also dived a bit against the New Zealand and Australian dollars.


Source  
Gold fell below $2 000 first time in a week12 Aug, 2020  

XAU/USD is decreasing for the third day in a row. What are the reasons? It all started from Friday's NFP report. US non-farm payrolls and unemployment rate came out better...

Gold & Silver Continue to Fly7 Aug, 2020  

Gold is making only new highs. It seems that gold prices remain in a bullish momentum. The focus remains on the shape and size of the next...

How to trade EUR after the ECB rate statement?2 Jun, 2020  

The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will...


Oil demand is recovering26 May, 2020  

The WTI price approaches the retracement level at 35. The head of the International Energy Agency forecasted that the oil market will recover...

Saudi Aramco: temporary balance12 May, 2020  

Since its IPO in December 2019, Saudi Aramco's stock price has been consistently declining. Before the New Year, it traded at $35. But in the second week...

Dollar rallies on Powell's remarks27 Feb, 2019  

On Wednesday, the evergreen buck ascended in Asia after Fed Chair Jerome Powell came up with a positive assessment of the American economy...


The yellow metal stands still8 Feb, 2019  

The postponed US-China summit as well as weaker estimates for the EU are playing into a decelerating global surge narrative, which could...

Dollar surges versus counterparts6 Feb, 2019  

The evergreen buck was held back from dismal American services data, notwithstanding experts reaffirming the services sector was still firm...

Gold surges a bit15 Jan, 2019  

On Tuesday, gold managed to gain a bit due to the fact that the first dive in factory gate inflation for four months backed the argument that the major US bank...