XAU/USD reversed down from the $1,700 area and dropped to $1,586 on March 12.
Gold concludes up
Information is not investment advice
On Monday, the yellow metal concluding up, giving up earlier losses due to the fact that market participants reacted to a dive in stocks after US leader ruined perceived progress on trade negotiations by threatening to lift levies soon on China.
The yellow metal has rebounded with steep market dives as a response to the fact that US-China tariff talks suddenly froze. In fact, tariff threats worry market participants because metals are in line to suffer, while anti-inflationary aspects of retaliations along with higher costs for producers impact nearly all products.
June delivery gold futures managed to surge by 0.2% concluding the trading session at $1,283.80 an ounce, having recorded a minimum of $1,278.10. Eventually, on Friday, the contract inched up by 0.7% reaching $1,281.30, paring the previous week’s dive to 0.6%.
In addition to this, gold stocks managed to rally by 0.3%. As for the iShares Silver Trust SLV stocks gained by 0.1%. Besides this, the VanEck Vectors Gold Miners ETF GDX ascended by almost 0.4%.
Besides this, July delivery silver futures SIN9 declined by 0.3% being worth $14.927 an ounce, having lost 0.7% the previous week.
Market participants clang to safe-haven assets, including the Japanese yen. The currency pair USD/JPY gained ground versus the evergreen buck, after several tweets from US leader on Sunday demonstrated impatience with the progress of China-US trade negotiations. US President told he’d lift levies on $200 billion of Chinese exports by Friday from 10% to 25%.
The USD index was nearly intact, demonstrating an outcome of 97.493.
Besides this, China shares SHCOMP inched down by 5.6%, demonstrating their worst one-day performance since 2016.
Additionally, copper futures jumped by 0.4% being worth $2.830 a pound.
The country has come through the worst and is recovering now.
Moody’s downgraded the country to ‘junk’ status on Friday.
The US economy has been hit hard by the coronavirus outbreak.