Gold edged lower in early Asian trade but managed to hold above $1,730 an ounce amid uncertainty over coronavirus and renewed tensions between the Trump administration and Bejing. US-China stresses came to the fore over the coronavirus crisis and escalated further with China’s proposal to impose security laws on Hong Kong. In the last week, the metal lost 0.3%. Historically, Gold reached an all time high of 1920.30 in September of 2011. (Bloomberg) — Asian stocks began the week in mixed fashion as traders weighed more signs of economies reopening around the world against the rise in U.S.-China tensions.Hong Kong shares extended Friday’s slide, following police clashes with protesters marching against China’s move to crack down on dissent Despite heightened U.S.-China tensions, spot gold shows little reaction and a lack of more powerful triggering events might put pressure on gold… If you have waited enough, Please click
Gold edged lower in early Asian trade but managed to hold above $1,730 an ounce amid uncertainty over coronavirus and renewed tensions between the Trump administration and Bejing. US-China stresses came to the fore over the coronavirus crisis and escalated further with China’s proposal to impose security laws on Hong Kong. In the last week, the metal lost 0.3%.
Historically, Gold reached an all time high of 1920.30 in September of 2011. Gold – data, forecasts, historical chart – was last updated on May of 2020.
Gold is expected to trade at 1701.84 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1606.60 in 12 months time.
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Gold is mostly traded on the OTC London market, the US futures market (COMEX) and the Shanghai Gold Exchange (SGE). The standard future contract is 100 troy ounces. Gold is an attractive investment during periods of political and economic uncertainty. Half of the gold consumption in the world is in jewelry, 40% in investments, and 10% in industry. The biggest producers of gold are China, Australia, United States, South Africa, Russia, Peru and Indonesia. The biggest consumers of gold jewelry are India, China, United States, Turkey, Saudi Arabia, Russia and UAE. The gold prices displayed in Trading Economics are based on over-the-counter (OTC) and contract for difference (CFD) financial instruments. Our gold prices are intended to provide you with a reference only, rather than as a basis for making trading decisions. Trading Economics does not verify any data and disclaims any obligation to do so.
Stocks Trade Mixed Amid Mounting China Tensions: Markets Wrap
Stocks Trade Mixed Amid Mounting China Tensions: Markets Wrap
(Bloomberg) — Asian stocks began the week in mixed fashion as traders weighed more signs of economies reopening around the world against the rise in U.S.-China tensions.
Hong Kong shares extended Friday’s slide, following police clashes with protesters marching against China’s move to crack down on dissent. Stocks climbed in Tokyo, Sydney and Seoul, and fluctuated in Shanghai. S&P 500 futures nudged higher, building on a rally from late in the Friday session. Oil traded near $33 a barrel in New York. Volumes may be light with holidays in the U.S., U.K. and Singapore. China set its daily yuan reference rate at the weakest level since 2008 after the increasing tensions drove the currency to a seven-month low.
On the virus front, Japan’s government is expected to lift the state of emergency in Tokyo and its surrounding regions later Monday, while more Australian children returned to schools and a hard-hit region in northern Italy reported zero fatalities for the first time. Still, the U.S. is considering restricting travel from Brazil, which now has the second-highest number of cases.
Fresh turmoil in Hong Kong that spilled over into street protests at the weekend is threatening to damage an already souring Sino-U.S. relationship. The U.S. should give up its “wishful thinking” of changing China, Chinese Foreign Minister Wang Yi said, warning that American leaders are potentially pushing toward a new Cold War. Bullish sentiment is prevailing for now and global equities remain about 30% higher than the March lows, spurred by stimulus measures and optimism for a swift rebound from the virus.
“One big threat to the recovery in markets is the escalating war of words between the U.S. and China,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney. “The main focus will likely remain on continuing evidence that the number of new Covid-19 cases is slowing in developed countries, progress towards medical solutions, the reopening of economies and signs that economic activity is picking up.”
Here are some key events coming up:
U.S. markets are closed Monday for Memorial Day holiday, while the U.K. is shut for the Spring bank holiday.Earnings continue with companies including Nissan Motor, British Land, Royal Bank of Canada and HP Inc.Singapore’s parliament on Tuesday is expected to announce another stimulus package.Thursday brings the U.S. jobless claims reading for the week ended May 23.Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.
These are the main moves in markets:
Futures on the S&P 500 rose 0.3% as of 1 p.m. in Tokyo. The gauge rose 0.2% on Friday.Japan’s Topix index advanced 1.2%.Hong Kong’s Hang Seng slid 1%.Shanghai Composite was little changed.Australia’s S&P/ASX 200 Index added 1.5%.South Korea’s Kospi Index gained 0.7%.Euro Stoxx 50 futures rose 0.6%.
The yen was little changed at 107.73 per dollar.The offshore yuan held at 7.1520 per dollar.The euro bought $1.0889, down 0.1%.The Aussie dipped 0.1% to 65.34 U.S. cents.
The yield on 10-year Treasuries fell one basis point to 0.66% on Friday. Futures traded flat.Australian 10-year yields were steady at 0.87%.
West Texas Intermediate crude added 1% to $33.58 a barrel.Gold dipped 0.4% to $1,728.52 an ounce.
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Author: Adam Haigh
Gold Intraday Downtrend Intact
Despite heightened tensions between the U.S. and China, the three major U.S. stock indices pared early losses to close with modest gains last Friday. Spot gold climbed 0.4% on day but still below its April-high, raising doubts over a false upside breakout seen last week.
Today, the U.S. equity markets are closed to observe the Memorial Day and the U.K. markets are closed for the Spring Bank Holiday. While a relatively quiet trading session may be expected, a lack of more powerful triggering events might continue to put pressure on gold.
From a technical point of view, spot gold remains on the downside as shown on the 1-hour chart. It has created another lower-high and is heading downward to test its previous low. The level at $1,740 may be considered as the nearest resistance, while a break below the nearest support at $1,721 (where a longer-term rising trend line is located) would be a more bearish signal, and possibly suggesting that the next support at $1,703 is exposed. Alternatively, a break above $1,740 would trigger a re-test to the previous high at $1,754.
Source: TradingView, Gain Capital
Author: George Lam