🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

PRECIOUS-Gold slumps to 1-month low on U.S.-China tariff rollback

Published 11/08/2019, 03:16 AM
© Reuters.  PRECIOUS-Gold slumps to 1-month low on U.S.-China tariff rollback
XAU/USD
-
XAG/USD
-
GC
-
SI
-
US10YT=X
-
DXY
-
XPD/USD
-

(Adds comments, graphic, updates prices)
* Gold, silver break below 100-day moving average
* Silver falls over 3% to hit over one-month low
* Wall Street's three main stock indexes hit record highs
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By K. Sathya Narayanan
Nov 7 (Reuters) - Gold slid about 2% on Thursday to its
lowest level in over a month as investor appetite for the
safe-haven metal decreased after a U.S. official confirmed that
Washington and China agreed to roll back tariffs as part of the
first phase of a trade deal.
Spot gold XAU= was down 1.7% at $1,465.78 per ounce as of
1:43 p.m. EST (1843 GMT), having earlier slipped 2% to
$1,460.75, its lowest since Oct. 1.
U.S. gold futures GCcv1 settled down 1.8% at $1,466.4.
"The optimism around potential agreement or the phase one
agreement is seeing some of the safe-haven flows starting to
ease and some profit taking emerging on the back of that," said
Suki Cooper, precious metals analyst at Standard Chartered Bank.
"Over the past week, we saw a number of risks that were
supporting gold market starting to ease, such as concerns around
the trade, Brexit, and the Federal Reserve indicating a hawkish
tilt ... So, it is almost a delayed response with profit taking
materializing."
China and the United States agreed to cancel, in phases, the
tariffs imposed during their months-long trade war, the Chinese
commerce ministry said earlier on Thursday. A U.S. official
confirmed the same later in the day. Wall Street's three main stock indexes hit record levels and
a gauge of worldwide equities surged to a 21-month high on trade
deal optimism, while dollar .DXY scaled a three-week peak
against key rivals. MKTS/GLOB USD/
Further weighing on bullion, U.S. 10-year Treasury yields
US10YT=RR rose to highest since Aug. 1. US/
Gold prices have fallen nearly 6.2% since hitting a
multi-year high of $1,557 an ounce in early September.
It was also trading below its 100-day moving average of
about $1,476 an ounce for the first time since May.


"Gold is in danger of breaking below its key recent range as
trade optimism continues to drive a global risk-on rally move
that is driving both global bond yields and the major indexes
sharply higher," said Edward Moya, a senior market analyst at
OANDA.
"Gold's longer-term bullish outlook should still be
reasserting itself, but that might not happen until we see a
major sell-off that targets the $1,450 an ounce level."
Among other precious metals, silver XAG= dipped 3.2% to
$17.07 per ounce, after touching its lowest since Oct. 1 and
breaking the 100-day moving average around $17 for the first
time sine July.
It was en route to its biggest one-day percentage fall since
late-September.
Platinum XPT= fell 1.9% to $911.20 per ounce, while
palladium XPD= gained 0.6% to $1,803.46 per ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Gold's 100-day Moving Average https://tmsnrt.rs/2oW2t54
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.