Gold futures plunged in early trade on Monday, as an apparent return of risk-on appetite took some shine off gold as a safe haven asset.
 |
| Best Commodity Trading Tips |
Weaker-than-expected US jobs data had propelled gold prices to three-an-a-half months high last week as prices rose 2.6 per cent to end at $1,340 per ounce. Gold prices possibly had the best week after a very long time, as investors sought safe haven investment after US President Donald Trump threatened tariffs on multiple nations, raising concerns over a global economic downturn.
Ongoing trade tensions between US and China have also supported gold prices. President Trump issued fresh threats to hit China with tariffs of another $300 billion of goods.
Meanwhile, expectations of a rate cut by the US Federal Reserve increased after weak macro data raised concerns that the prolonging US-China trade dispute is hurting the US economy hard. Fed Chair Jerome Powell also relented and moved away from his patient approach and acknowledged risks from the trade conflict, saying the central bank would respond as appropriate.
The US employment report on Friday came in weaker than expected, as it indicated a rise in non-farm payrolls by only 75,000, against a forecast of 1,80,000, thus raising the odds for the US Fed to cut interest rates sooner than later, which supported gold prices. The weak data dragged the US Treasury yields lower, while the Dollar Index sold off and fell to a six-week low, further supporting gold prices.
Gold: Buy MCX Gold August in the Rs 32,550-35,600 range with a stop loss at Rs 32,400 for a target price of Rs 33,000.
To Get Free Trial In Best Commodity Trading Tips
Missed
Call@8817002233
Whatsapp@6262029208
Mail Us = starindiamarketresearch@gmail.com
Seriously your calls are very awesome
ReplyDeleteHNI EQUITY TIPS