Gold nears $1,900 an ounce on renewed US-China spat, equity market weakness

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Gold nears $1,900 an ounce on renewed US-China spat, equity market weakness

On Thursday, the spot gold prices had wrapped up the day just shy of $1,900 an ounce after hitting a fresh nine-year peak a day earlier as investors’ concerns had been spurred up over an apparent reversal of US economic recovery, since US initial jobless claims had surged again last week less than a couple of weeks before the trillion-dollar pandemic stimulus agreed on March in the US Congress was scheduled to expire.

Apart from that, investors flocked on to the safe-haven assets further on Thursday after a basket of US stocks had retreated over concerns over a potential investigation on Apple Inc., eventually leading to a loss of over 2 per cent in the high-flying Nasdaq Composite stocks.

As a matter of fact, equity markets had opened broadly lower on Thursday over frets related to a persistence weakness in the labour market alongside a rapidly deteriorating Sino-US relation, however, the safe-haven precious spot gold prices had added to further bullish wing following reveal of media headlines that a number of US states had been probing Apple Inc.

for deceiving consumers regarding its streaming media service Apple TV+.

Sino-US tension increases gold bullion’s safe-haven bids

Apart from that, following Thursday’s gain of spot gold prices, analysts were quoted saying that the US Dollar alongside US equities would unlikely to recover in a near-term outlook amid a steady spike in pandemic cases in the United States, while without another round of trillion-dollar stimulus, the sufferings of US economy would likely to persist due to a dwindling in the US Consumer spending, accountable for roughly two-thirds of entire US economic activities.

Citing statistics, on Thursday’s commodity market closure, the spot gold prices had rounded off the day 0.77 per cent higher to $1,886.03 an ounce, whole the US gold futures’ prices had gained 1.3 per cent to settle down at $1,890 an ounce.

Meanwhile, adding that a downturn in the financials amid a near-zero interest rate alongside an underperforming American currency and a fresh wave of deterioration in Sino-US relationship, had been shoring up the bullions for the spot gold, a Chief Market analyst at TD Ameritrade in Chicago, JJ Kinahan said, “Financials are just going to have a tough time participating if we stay this low, that being the second-largest sector in the S&P 500.