Diamond & Jewelry News

Gold was a little choppy overnight in a range of $1326.90 - $1334.25, largely fading movements in the US dollar. It ticked up to its high of $1334.25 during early Asian hours as the DX hovered around 90.13, with the double top at $1335 providing resistance.

The yellow metal softened later during Asian hours and early European time to its low of $1326.90 while the DX rose to 90.28 as markets reacted to Trump’s tweet Sunday that China could remove its trade barriers and suggested that taxes will be reciprocal and a deal will be made on intellectual property along with Treasury Secretary Mnuchin saying he doesn’t expect a trade war between the US and China – largely walking back his comments saying it was possible on Friday.

Global equities advanced on that news with the NIKKEI up 0.5%, the SCI +0.2%, European shares unchanged to +0.7%, and S&P futures were +0.8%.

However, a couple of hours before the NY open, another Trump tweet regarding unfair auto trade between the US and China knocked S&P futures from its high, and pressed the DX down to 90.

Gold responded positively, and bounced back to $1333. Some geopolitical developments were largely offsetting, with the destabilizing factor of a Syrian chemical attack were mitigated by reports that North Korea told the US it is prepared to discuss denuclearization when Trump meets Kim Jong Un next month.

After the NY open, S&P futures continued to slide (2614), and the US 10-year bond yield pulled back from 2.801% to 2.786%.

The DX also dipped further, and took out support at 90 to 89.84. Strength in the euro ($1.2270 - $1.2325) from some comments by Draghi (slide in equities has not materially impacted euro zone financial conditions) weighed...

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