Diamond News

Gold was a little choppy overnight in a range of $1288 – $1296, largely fading movements in the US dollar.

It traded down to its $1288 low during Asian and early European time, as the DX rose to 93.74, boosted by more positive news on US-China trade.

The Chinese Finance ministry said it will slash import tariffs on passenger vehicles from 25% to 15%, and cut duties on car parts to 6%.

Shortly thereafter however, the DX retreated to 93.29, forced lower by strength in the pound ($1.3415 - $1.3490, hawkish comments from the BoE’s Vlieghe - expects interest rates to rise around 0.25-0.50% over the 3-year forecast period) and a bounce in the euro ($1.1756 - $1.1829 – falling Italian bond yields).

Gold rallied in response, and took out resistance at the past 3 sessions’ highs ($1293-94) to reach $1296 (some short covering seen). Mostly firmer global equities were a headwind for gold, with the NIKKEI off 0.2%, the SCI flat, Eurozone markets were up from 0.1% - 0.2%, and S&P futures were +0.2%. Strong oil prices (WTI to $72.75, fresh 3 ½ year high) were a tailwind for stocks.

US stocks opened firmer (S&P +9 to2741, automakers lead gainers on the overnight Chinese tariff reduction), with a stronger reading on the Richmond Fed Manufacturing Index (16 vs. exp. 8) aiding the move.

The US 10-year bond yield ticked up from 3.058% to 3.078%, and the DX climbed back to 93.62. Gold was pressured lower, and traded down to $1291.50.

However, markets reversed in the afternoon, after Trump said that he was not satisfied with the US-China trade talks, there was no deal with China on ZTE, and also remarked that the highly anticipated summit with North Korea might not...

Read more from our friends at Gold & Silver

Pin It

Diamond Buyers Club

twitter facebook 

Follow us on Twitter and Facebook

Contact Us

+1 (832) 736-2772
 

PO Box 5613 
Katy, TX, USA