Gold prices Kiss 3 Month High as Safe-Haven Buying – Gold Silver Reports

Gold Silver Reports (GSR) – “Gold prices Kiss 3 Month High as Safe-haven buying was also seen because manufacturing data from China and the euro zone were seen as a cause of concern.”

Gold prices kiss a more than 3-month high on Tuesday as expectations rose that the U.S. Federal Reserve would cut interest rates to offset the impact on growth of the U.S.-China trade war, fueling demand.

Lower interest rates cut the opportunity cost of holding non-yielding commodities, while gold also tends to benefit from growth concerns as an alternative to cyclical assets like stocks.

Spot gold was 0.1% higher at $1,325.72 per ounce, after touching its highest since Feb. 27 at $1,328.98 in the previous session.

U.S. gold futures were up 0.2% at $1,330.50 an ounce.

“A surge in safe-haven demand has been observed over the past few days because no-one expected the United States to open a new trade war front with Mexico after China,”.

Read More : Spot gold Target & Resistance @ $1,335 —$1,342, Downside Support Level 1,313

On Monday, Washington accused China of pursuing a “blame game” in recent public statements and a weekend white paper that it said misrepresented the trade negotiations between the two economies.

The prolonged trade war between the two countries has roiled financial markets, denting risk sentiment among investors.

Elsewhere data showed U.S. manufacturing growth slowed in May to its weakest pace in more than 2-1/2 years, fuelling bets that the Fed may cut rates by the end of this year.

St. Louis Fed president James Bullard on Monday conceded that risks to economic growth posed by trade tensions may warrant a rate cut soon.

The news prompted U.S. Treasury yields to slip to their lowest since September 2017.

“The correction of the greenback has given a lift to bullion while the decline of U.S. yields is another favourable element for the precious metal,” said ActivTrades analyst Carlo Alberto De Casa in a note.

Read More : MCX Live Commodities Weekly Recommendation & Technical Research Report 03 — 07 June 2019 – Neal Bhai Reports

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 2.2% on Monday, their biggest one-day percentage gain since July 2016.

At these high price levels, “there will be some profit-booking, but the tone (for gold) is positive until $1,300 on the downside is breached,”.

Silver was down 0.3% at $14.73 per ounce, having touched a more than two-week high of $14.83 on Monday.

Spread the love

Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

3 thoughts on “Gold prices Kiss 3 Month High as Safe-Haven Buying – Gold Silver Reports”

Leave a Comment