Gold stays under $1562/60, disregarding threat-negative in Middle East
Price of gold remains predominantly punchy while taking rounds to $1,557.20, following an upturn to $1,559 during Monday’s early trading hours. The yellow metal needs to respond to Libya’s power play and protests in Iraq amid the broad strength of the US dollar. Aspirations that the industry leaders will be able to address the problems of the Middle East while cheering the trade optimism surrounding the US are also exerting downside pressure on the statement.
Many of Libya’s oil exports are on pause, about 8,00,000 barrels per day, as dictator Khalifa Haftar has placed ports under his authority.
But the report seems to be overlooked by markets as US 10-year treasury yields and S&P 500 Futures are both optimistic between 1.85 per cent and 3,327 separately.
The US currency (USD) stands at the front against all other competitors as recent data from the world’s largest economy restrict more US Federal Reserve (Fed) rate hikes. Trump’s government’s ability to throw the key trade agreements with China, Mexico and Canada could also help the greenback.
On the opposite, trials on the prosecution of US President Donald Trump will continue on Tuesday and may test the danger tone of the business. Even, the Republican leader’s second comment suggests challenges for the phase-two negotiation between the US and China as it states, “We must vigorously enforce the terms.”
Going ahead, US shares are during the day thanks to Martin Luther King’s Birthday, while the rest of the country has fewer catalysts open. Consequently, the yellow metal can retain the latest strength except for any intense trade / economic storylines.