flying bird

Tricks and Tips

free trail

free trail
free trail

Thursday, 5 July 2018

Gold prices nudged lower amid a steady dollar on Friday.

CapitalStars Investment Adviser 

Gold prices nudged lower amid a steady dollar on Friday, with investors bracing for any impact on global markets from a deepening trade conflict between the United States and China.

The United States is due to begin collecting tariffs on $34 billion in Chinese goods at 0401 GMT on Friday.
U.S. jobs data later in the day was in focus as well.

Spot gold had fallen 0.3 percent to $1,253.11 an ounce by 0332 GMT.

U.S. gold futures for August delivery were 0.4-percent lower at $1,254.10 an ounce.

Gold prices were being weighed down by a steady dollar, said Helen Lau, analyst at Argonaut Securities.

"If the trade war escalates and then China could sell U.S. treasuries and buy gold. This would be a big event," Lau said.

Major currencies, including the dollar, trod water early on Friday as investor caution prevailed ahead of the deadline and the jobs data. Faltering Chinese markets dented Asian stocks in choppy trade.

Meanwhile, U.S. central bankers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong, minutes of the Federal Reserve's last policy meeting on June 12-13 released on Thursday showed.

CapitalStars Investment Adviser 

The minutes described a meeting in which the Fed raised interest rates for the second time this year. It also suggested policymakers might soon signal the central bank's rate-hiking cycle was advanced enough that policy was no longer boosting or constraining the economy.

"I take the view the Fed will take a modestly dovish line while trade tariff uncertainties persist. Gold is oversold, so I expect it to rally somewhat while interest rate expectations soften, perhaps to one more instead of two quarter point increases this year," said Alasdair Macleod, head of research with Toronto-based Goldmoney Inc.

Spot gold may test support at $1,247 per ounce, a break below which could cause a decline to the next support level at $1,237, Reuters technicals analyst Wang Tao said.

In other precious metals, silver fell 0.2 percent to $15.95 an ounce.

Palladium was 0.3-percent lower at $945 an ounce and platinum declined 0.6 percent at $835.50.
CLICK HERE FOR GET DETAILS & JOIN OUR BEST ADVISORY  -
CAPITALSTARS CALL US : 9977499927


0 comments:

Post a Comment