Forex Marketz Daily Forex News – Fully Markets Update
Gold futures moved lower, before steadying, during Asian trade hours. They were also lower during the North American trade hours. This comes as the U.S. dollar is firming thanks to rising Treasury yields. There is lessening global tensions and relaxing worries about a trade spat between the United States and China.
By 2:30 pm EST, spot gold (XAU/USD) was down 0.66 percent. The yellow metal was fetching $1,321.47 per ounce. This erased the previous day’s gains when it ended a three day losing streak.
U.S. gold futures, for June delivery, was also lower. They were down 0.76 percent at $1,322.90 per ounce.
Treasury yields were up and trading at three percent. This is the first time they were this high in more than four years. The stability and strength of the U.S. economic growth is going well. This was supported by data that showed that U.S. consumer confidence recovered in April. Also, new home sales rose better than expected for the month of March.
However, higher yields on Treasuries makes the yellow metal a less attractive. This is because the precious commodity does not pay interest.
Gold Traders React to Lessening Global Tensions with North Korea and Trade Worries
Also affecting the yellow metal is a decline in geopolitical risk. According to headlines, the United States said it might reach a trade agreement with China. Officials from both sides might sit down within the next few days.
In other geopolitical headlies, North Korean President Kim Jong Un is scheduled to meet with South Korean President Moon Jae-In. This important summit is scheduled for Friday. The North Korean leader is also expected to meet with President Trump in either May or June.
