Forex Marketz Daily Forex News – Fully Markets Update
The widely traded spot gold futures contract, as well as other yellow metal contracts, gained ground as the Asian trade session kicked off the week.
Traders are monitoring increasing tensions between the United States and China as well as conflicting stories of a Covid-19 cure.
The U.S. Secretary of State, Mike Pompeo, said that there is “a significant amount of evidence” that the novel Covid-19 virus emanated from a lab in China. However, he did not dispute intelligence agency findings that the virus was NOT made by man and NOT a weapon.
With that said, the bullions gains were capped as the U.S. dollar was stronger on Monday.
As of 1:10 am, the spot gold futures contract was up 0.7 percent to trade at to $1,696.88 per ounce. The front end U.S. gold futures contract added 0.1 percent to fetch $1,703.20 per ounce.
The U.S currency (USD) gained ground this morning on safe haven appeal over rising tensions between the United States and China. There are also rising tensions with Iran and a dimming economic outlook. This is rising the appeal of liquidity as a safe haven.
Gold Gains as Sentiment Sours on Political Tensions
Tensions between the United States and China are elevated. The war of words continue between the two superpowers as the U.S. President, yesterday, said that he believed that a “mistake” in China was the cause of the Covid-19 (coronavirus) pandemic.
President Trump offered no evidence to support this view. The nation’s top spy agency said that the Covid-19 virus was not man made. They were, however, looking into if was released in “an accident at a laboratory in Wuhan.”
Traders Monitor Confusing News of a Possible Vaccine
According to John Hopkins University Medical Center, there are now 3.4 million cases around the world and 244,911 dead from the pandemic.
Yesterday, President Trump said that he is confident that a coronavirus vaccine will be in place the end of the year. Trump said that “we are very confident that we are going to have a vaccine at the end of the year, by the end of the year.”
U.S. public health officials have said that a vaccine could take up to 18 months to be found.
