Gold Softens Further on Optimism in Both Us-China Trade and Brexit - Gold Today October 11, 2019
Jim Pogoda, Senior Gold Trader, Gold Bullion International
Overnight – remained choppy, trading between $1480 -$1504
· Gold retained its choppy tone last night, trading in a range of $1480 - $1504.
· It held fairly steady between $1491 – 97 during Asian time – despite a further rise in S&P futures off of upbeat comments last evening from Trump (China talks went very well today, meeting at White House tomorrow, we had a very, very good negotiation), and prospects for getting a deal on Brexit.
· However, gold spiked to its $1504 high during early European time on news that an Iranian oil tanker was hit by two missiles.
· The news launched oil briefly to $54.85, knocked back S&P futures (2948), and pushed the US 10-year bond yield to 1.642%.
· However, oil quickly retreated back to $54.15 ahead of the NY open.
· S&P futures bounced back (+32 to 2973) over increasing optimism for a US-China trade deal, and the US 10-year bond yield climbed to 1.717%.
· The DX retreated, however, under pressure from a continued strong rally in the pound ($1.2425 - $1.2681, 3-month high) off of further optimism of a Brexit deal (EU’s Barnier given go –ahead to enter into detailed discussions with the UK government) and the euro ($1.1001 - $1.1060), along with some technical selling under 98.69 (up trendline from 6/25 95.84 low).
· Gold tumbled – despite the weakness in the greenback as many longs went to...