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  • Gold bounces back $ 1530 levels, upside remains more compelling.
  • Risk hit on fresh China trade comments, 30-yr Treasury yields back below 2%.
  • Focus shifts to US Retail Sales, Philly Fed Manufacturing and Industrial figures.

Gold (futures on Comex) see-sawed between gains and losses so far this Thursday, with the risk sentiment and demand for safe-havens playing a key role amid mounting US recession risks and ongoing US-China trade tensions.

US-China trade woes loom

The yellow metal picked up fresh bids last minutes after fresh comments from China hit the wires, re-igniting the US-China trade spat and denting the risk sentiment. The demand for the safe-haven gold was back on the rise, as investors flocked to safety at the expense of Treasury yields, equities etc.

Gold prices retreated from the recent highs in the overnight trades, as markets witnessed a shift in the risk mood, with a recovery in the US equity futures and Treasury yields after Wednesday’s turmoil. The 30-year Treasury yields regained the 2% mark, having fallen to record lows below the last in early Asia.  

The US 2-year-10-year Treasury yield curve inverted a day before and fuelled worries over an upcoming recession, sending the stocks and yields collapsing. The 30-year Treasury yields fell to a record low below 2%.

In another evidence of increased investors’ confidence in the precious metal, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.9% to 844.29 tonnes on Wednesday., as cited by Reuters.

Attention now turns towards the US macro releases for fresh signs on the US economic situation that could direct fresh moves in the precious metal. Until then, the risk flows will continue to have a major influence on the prices.

Gold key levels