🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

PRECIOUS-Gold dips to two-week low on recovery hopes

Published 27/05/2020, 10:50
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
GLD
-
USLVF
-

* Gold will breach $2,000/oz in next 12 months - Citi
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Brijesh Patel
May 27 (Reuters) - Gold dropped to its lowest in two-weeks
on Wednesday as hopes of quick economic recovery drove investors
towards riskier assets, although U.S.-China tensions over Hong
Kong put a floor under bullion prices.
Spot gold XAU= was down 0.6% at $1,700.30 per ounce by
1223 GMT. U.S. gold futures GCcv1 fell 0.8% to $1,691.80.
"It's very important for gold prices to stay above $1,700.
Otherwise, if the price correction continues, speculative
investors are likely to leave this boat and increase pressure on
prices," said Commerzbank analyst Eugen Weinberg.
"One can mention the geopolitical tensions are contributing
somewhat and supporting gold prices currently. But, until now
this situation has failed to ignite fears on the equity market."
Optimism about the development of coronavirus vaccines and a
revival of business activity has lifted risk sentiment in the
financial markets. .EU
After a batch of poor economic readings from the United
States, data on Tuesday showed U.S. consumer confidence nudged
up in May and new home sales beat expectations. Despite the pullback in bullion prices, the outlook remains
positive for gold, which is seen as a safe-haven asset during
times of political and economic uncertainty, analysts said.
The risks of a temporary short-term gold market unwind to a
low- to mid-$1,600 level seems to be rising, Citi said in a
note, adding it remained "outright bullish (on) gold over the
medium term and forecast that $2,000 ounce will be breached in
the next 12 months".
Growing political unrest in Hong Kong over Beijing's
proposed national security laws has kept investors on edge.
U.S. President Donald Trump said Washington was working on a
strong response to China, adding it would be announced before
the end of the week. Elsewhere, palladium XPD= eased 0.1% to $1,954.75 per
ounce, silver XAG= fell 0.3% to $17.05 and platinum XPT= was
steady at $839.74.

Latest comments

Risk Disclosure: 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
© 2007-2024 - Fusion Media Limited. All Rights Reserved.