On Tuesday, the 4th of June 2019, the precious metal gold had been found steadying just a notch shy of three-month peak over renewed trade optimism, after trade headlines had underscored that China was still open to negotiations over its trade conflict with United States, while raising expectation of a Fed interest rate cut had added to a bullish bias on Tuesday’s (June 4th) market closure.
Commerce Ministry of China had urged Washington on Tuesday (June 4th) not to discontinue dialogues despite retaliatory tariffs on each other’s product, which had been rattling financial markets and disrupting supply chain all over the world.
None the less, on Tuesday’s market closure, Spot gold slightly offset 0.1 percent of its earlier gains to $1324.01 per ounce, after breaching its highest level since February 27th at $1328.98 earlier in the Asia-Pacific trading sessions, and US gold had curtailed the day 0.1 percent high at $1328.70 an ounce, while several analysts and economists had warned the investors not to bet over a rapidly snowballing spot gold future price, which had gained more than four percent over the last couple of days.
Adding that the precious metal would likely to find support at $1312-$1318 region, and an upside break could witness a resistance at $1345-$1355 level, as it was experienced three months earlier, a senior vice president at MKS SA, Afshin Nabavi said, “Headlines have come up saying U.S.-China trade dispute can be negotiated over talks which is pushing gold down,” while pointing towards a heightened Fed’s rate cut probability to almost 95 percent later this year, founder of Circle Squared Alternative Investments, Jeffrey Sica said, “Investors are exiting the safe-haven asset at a higher price and putting their money in equities, which is gaining today. The rise in the equities market is actually overpowering the effect of Powell’s comment on rate cuts”.