FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1734
BTC/USD
43 160.26
GBP/USD
1.3652
USD/JPY
109.6065
USD/CHF
0.9232
USD/CAD
1.2735
EUR/JPY
128.6107

Gold rises for a third straight day as US riots grow


1 June 2020

The gold price is rallying for a third straight day in today’s trading session on the back of US dollar weakness as well riots in major U.S. cities caused by the death of an unarmed black man spiraled out of control which left investors heading for the precious metal as a safe haven asset.

Protesters have now set up camp in many cities in the United States over the death of George Floyd by a Minneapolis police officer, after some say, was caused by excessive force after he resisted arrest and further adds to the racial divide which is now sweeping the world’s biggest economy. in police custody, in a wave of outrage sweeping a politically and racially divided nation

Concerns about the unrest in the United States at the moment appear to be weighing on market sentiment," said Michael McCarthy, chief strategist at CMC Markets, adding that rising tensions between the world's top two economies provided further support to gold. The protests have turned into riots in many cities and now the question is this situation going to calm down or spiral out of control which will lead to further support for gold as a protective asset.

The US China trade war which has bubbled to the surface again is also likely to help the gold price and now the situation has been exacerbated by China’s decision to effectively shut down Hong Kong’s attempt for continuous autonomy by introducing a law which would allow the Chinese government to crush and dissident in Hong Kong.

US President Donald Trump has already threatened sanctions on China if they go ahead with the law against Hong Kong and although it is just words at the moment, any concrete moves by the US President will rattle financial markets and likely boost the gold price.

“What could change would be a major re-escalation of the trade war, if it involved much more punitive tariffs that required abrupt changes to supply chains. This is not something we expect as a base case, but clearly the ramping up in geopolitical tensions raises that risk,” said ABN Amro’s senior economists Bill Diviney and Arjen van Dijkhuizen. “It will be important in that environment to distinguish between aggressive rhetoric – which could nonetheless have big market impacts – and concrete policy changes that affect the macro outlook.” they added.

#source

Related

Stock Futures Up Ahead Of Fed Meeting
Stock Futures Up Ahead Of Fed Meeting

Futures in the United States and Europe are trading higher today, as investors focus on China’s Evergrande whirlwind, which has even overshadowed the Federal...

22 Sep 2021

Gold's sudden glow in a falling market
Gold's sudden glow in a falling market

Gold's ability to resist the general downtrend speaks to investor confidence that global central bank policies will remain soft enough to avoid triggering a global downward asset sell-off spiral...

21 Sep 2021

Forex and Cryptocurrency Forecast for September 20-24, 2021
Forex and Cryptocurrency Forecast for September 20-24, 2021

The dollar continues to strengthen, and the EUR/USD pair moves south. Starting on Monday September 13 at 1.1810, it ends the five-day run at 1.1730. The movement...

20 Sep 2021

Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.