https://www.miningweekly.com
Gold|Huawei|Platinum|Equipment
Gold|Huawei|Platinum|Equipment
gold|huawei|platinum|equipment

Gold sinks most in a year as trade truce deals blow to bulls

Gold sinks most in a year as trade truce deals blow to bulls

Photo by Creamer Media

1st July 2019

By: Bloomberg

  

Font size: - +

SINGAPORE – Gold opened the third quarter with a slump back below $1 400/oz after the US and China agreed to a truce in their trade war, dealing a blow for now to havens that were bolstered in recent months by the long-running tensions as well as prospects for looser monetary policy.

Prices fell after Donald Trump and Xi Jinping’s meeting over the weekend, at which the leaders of the two largest economies agreed to resume negotiations. Still, the setback may be temporary as investors now train their focus on US jobs data due Friday for clues on the Federal Reserve’s next move on policy.

Bullion hit a six-year high last week as the trade war dragged on, top central banks including the Fed adopted a more dovish tone, and tensions spiked between the US and Iran. Driven by speculation that US interest rates may soon be headed lower, investors plowed into bullion-backed exchange-traded funds, which swelled 5% in June, the most since 2016.

“Certainly this morning, we’re seeing some weakness,” Daniel Hynes, commodity strategist at Australia and New Zealand Banking Group, told Bloomberg Television. “But I do think the outlook for rates in the US in particular has been a real driving force. So we’re quite positive toward gold, we think this abatement in the US dollar strength and potential rate cuts in the near term will certainly continue to boost investment demand.”

Spot gold dropped as much as 1.8%, the biggest intraday fall in a year, to $1 384.06/oz, and was at $1 391.32 at 10:36 a.m. in Singapore. Prices hit $1 439.21 on June 25, the highest since 2013, and rallied 8% last month. A gauge of the US dollar rose 0.1% on Monday after sagging 1.6% in June.

After meeting Xi, Trump said he would hold off imposing additional tariffs on Chinese imports and delay restrictions against Huawei Technologies, letting US companies resume sales to China’s largest telecommunications equipment maker. Further details on the deal were light though, and markets are still pricing in an interest rate cut at the Fed’s policy meeting this month.

In other precious metals, spot silver fell 0.8%, platinum lost 0.1% and palladium was 0.2% higher.

Edited by Bloomberg

Comments

Latest News

The integration of Alamos' Island Gold mine (pictured) and Argonaut's Magino mine will create synergies of $515-million.
Alamos buys rival Argonaut
27th March 2024 By: Mariaan Webb
Ironveld smelter
Ironveld ramp-up slower than expected
28th March 2024 By: Darren Parker

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.124 0.159s - 92pq - 2rq
Subscribe Now