The sense of risk seems to be fading into the global stock market financial markets again upstream and the appetite for traditional safe haven assets such as gold, bonds or Japanese yen diminishing.
Gold prices moved higher than six-year highs, but held above $ 1,500 on Thursday as risk appetite returned to financial markets, reducing demand for precious metal for safe housing.
Trade data from China sent a wave of relief through markets with unexpectedly rising exports in July and imports falling less than expected.
Despite analyst warnings that data may be temporary in the face of rising US pending tariffs on Chinese products in September, another round of Beijing yuan fixing was stronger than expected as diminishing market tensions. .
In a light day of economic data without planned Federal Reserve filings, higher-than-expected weekly job claims underscored the strength of the US labor market.
Concerns over the economic consequences of the ongoing trade dispute between the US and China, coupled with rising expectations that the Federal Reserve will have to lower interest rates further to capitalize on non-yielding rods, have sent gold into a strong hold bringing in profits of approximately 15% by year.
Analysts at Orbex Brokerage suggested that the profits seemed excessive.
“With the narrative of the US-China trade war fading, the focus may once again shift to economic data,” they said.
While gains in the precious metal are likely to see a modest pull in the near term, the bias remains on the upside, these analysts said in a note.
John Reade, market chief at the World Regardless, highlighted the still strong demand.
“Further worthy introductions to the gold ETFs yesterday, about 20 tonnes on a net basis, spit approximately 50:50 between the US and European listed products,” he tweeted.
In other metals trading, the silver futures fell 1.8% to $ 16,890 per ounce of land by 9:10 AM ET.
The Palladium futures futures advanced 0.4% to $ 1,415.85 an ounce, while the sister metal plate lost 1.6% to $ 857.25.
In base metals, copper traded 1.1% to $ 2,600./Investing.com