Gold Bulls Emboldened By Tensions In Hong Kong And Weaker USD
Helen Rush | Jun 12, 2019 07:02AM ET
After two days of a bearish correction, gold prices resumed the ascent and got back above $1,330 on Wednesday. Yesterday, the bullion briefly slipped to lows below $1,320 though trimmed intraday losses afterward.
The precious metal derives support from a combination of risk aversion and a weaker U.S. dollar. Risk sentiment has deteriorated amid tensions in Hong Kong, where authorities postponed the second reading of a bill allowing extradition to mainland China as tens of thousands of protesters blockaded government headquarters.
Meanwhile, the greenback came under the selling pressure ahead of the US CPI data due later today. Should the figures disappoint and come in lower than expected, expectations of a rate cut by the Fed will rise further, which could fuel further USD sell-off and give the additional support to gold prices. In this scenario, the bullion may challenge the $1,337 figure, which is standing on the way to $1,340.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.