Breaking News
0

Gold Prices Dip After Solid Rally as Risk Sentiment Returns

CommoditiesAug 16, 2019 07:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - Gold prices dropped on Friday, giving back a small portion of August’s gains, as sovereign debt yields pulled away from historic lows and signs of economic stimulus boosted risk sentiment.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange, fell $8.45, or 0.6%, to $1,522.75 a troy ounce by 7:03 AM ET (11:03 GMT).

Global stocks were on the rise as China hinted at plans to spur consumption, while Thailand also joined the fray, announcing roughly $10 billion in economic stimulus.

The moves by policymakers helped calm nerves over the economic outlook that had boosted demand for safe-haven gold.

The yield on the 10-year U.S. Treasury also moved back above that of the 2-year note, reversing the inversion that some economists say flags a pending recession.

Yields on sovereign debt in general, such as the U.S. 30-year Treasury bond or 10-year paper from the likes of Germany or France, were also moving away from historic lows, placing some slight pressure on non-yielding bullion.

Despite Friday’s drop, Barani Krishnan, senior commodity analyst at Investing.com, noted that “gold is enjoying its best year since hitting record highs eight years ago”. The precious metal was up nearly 6% in August with gains of 16% year-to-date.

Central banks responding to heightened trade tensions, a slew of disappointing global economic data and, most recently, the U.S. yield curve inversion are among the bullish factors supporting gold prices, Krishnan said. He also pointed to buying by central banks and speculative support from hedge funds and exchange-traded gold funds.

Traders will likely still keep an eye on U.S. economic data due later in the session for short-term trading opportunities in the precious metal.

The University of Michigan’s preliminary reading of consumer sentiment for August will provide insight into how the American consumer’s optimism has been hit by U.S. President Donald Trump’s recent announcement of further tariffs in the ongoing trade dispute with China.

Investors will also receive an update on the state of the U.S. housing market with the publication of housing starts and building permits for July. Consensus is pointing to a recovery from a dip in June as home builders bet that lower mortgage rates will support demand for housing.

In other metals trading, silver futures lost 0.5% to $17.137 a troy ounce by 7:04 AM ET (11:04 GMT).

Palladium futures inched up 0.1% to $1,440.30 an ounce, while sister metal platinum fell 0.7% to $836.45.

In base metals, copper was unchanged at $2.595 a pound.

Gold Prices Dip After Solid Rally as Risk Sentiment Returns
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
edgar siordia
edgar siordia Aug 17, 2019 4:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
gold will keep going up for a while more.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email