Gold on Tuesday was slipping, struggling to hold above a psychologically significant price above $1,300 an ounce as equity benchmarks attempted to stage a modes rebound from a period of trade-related uncertainty.
June gold
GCM9, -0.18%
receded $2.10, or 0.2%, at $1,299.60 an ounce, after jumping 1.1% on Monday and marking the first settlement above $1,300 and highest most-active contract finish since April 10, according to FactSet data.
The SPDR Gold Shares ETF
GLD, -0.06%
meanwhile, was off less than 0.1% in premarket action and the gold-miners focused exchange-traded VanEck Vectors Gold Miners ETF
GDX, -0.53%
also was off by about that much.
July silver
SIN9, +0.29%
meanwhile, added 4 cents, or 0.3%, at $14.820 an ounce, after slipping 0.1% in the previous session.
Commodity investors are deriving a modicum of optimism from recent comments from President Donald Trump, who said late Monday that it should be clear in “three or four weeks” if a U.S. delegation’s recent trip to China to discuss trade was successful. “I have a feeling it’s going to be very successful,” he said, lifting market sentiment that has been buffeted by worries about intensifying tensions between the world’s largest economic superpowers, which could pose a threat to the health of the global market.
U.S. stocks, which tend to rise as gold falls, were bouncing modestly off their recent lows, with the Dow Jones Industrial Average
DJIA, +0.39%
and the S&P 500 index
SPX, +0.45%
poised to rise at the start of regular trade.
On Monday, China announced that it would impose tariffs that could reach 25% on $60 billion in annual U.S. exports on June 1, after the U.S. last week raised tariffs on $200 billion in annual Chinese imports to 25% from 10%.
Against those developments, a reading of trade, the import price index, climbed 0.2% last month, the government said Tuesday, below Wall Street forecasts calling for an increase of as much as 1%.
Despite the slippage for gold on Tuesday, technical analysts say the recent climb for bullion signifies that the commodity is taking a bullish turn after somewhat listless trade. “In regards to the technical picture, gold is turning bullish on the daily charts as prices have broken above the previous higher low at $1290,” wrote Lukman Otunuga, research analyst at FXTM, in a daily research note.
“Gold has experienced an incredible appreciation early this week with prices sprinting towards the psychological $1300 level as risk aversion sent investors rushing to safe-haven assets,” he wrote.
The analyst said that trade-war fears will remain a focus for investors.
Elsewhere on Comex, July platinum
PLN9, +0.63%
gained $11.60, or 1.4%, to $866.50 an ounce, more than erases its losses on Monday. June palladium
PAM9, +0.37%
advanced $9.20, or 0.7%, to trade at $1,326 an ounce.
Meanwhile, July copper
HGN9, +0.09%
which has been sensitive to the Sino-American trade tensions, was off less than 0.1% at $2.718 a pound. Trade jitters between the world’s largest economies has the potential to hurt demand for the industrial metal.
Source : MTV
