Saturday , December 15 2018
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Gold Momentum Stalls Despite Italy Vote, Trade War Concerns

Summary:
Gold futures dipped to start the trading week despite the yellow metal gaining momentum on Friday. Even with investors concerned about a potential trade war and the recent Italian election results threatening the integrity of the European Union (EU), gold prices were unable to take advantage. April gold futures tumbled .10, or 0.23%, to ,320.30 per ounce at 16:23 GMT on Monday. Gold spiked on Friday, helping trim its weekly loss to just 0.5%. Silver, the sister commodity to gold, is also trading lower to kick off the trading week. May silver futures slipped %excerpt%.041, or 0.25%, to .425 an ounce. Silver was flat last week. Last week, President Donald Trump rocked headlines when he announced that “trade wars are good, and easy to win!” He told US executives on Thursday that he plans

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Gold futures dipped to start the trading week despite the yellow metal gaining momentum on Friday. Even with investors concerned about a potential trade war and the recent Italian election results threatening the integrity of the European Union (EU), gold prices were unable to take advantage.

April gold futures tumbled $3.10, or 0.23%, to $1,320.30 per ounce at 16:23 GMT on Monday. Gold spiked on Friday, helping trim its weekly loss to just 0.5%.

Silver, the sister commodity to gold, is also trading lower to kick off the trading week. May silver futures slipped $0.041, or 0.25%, to $16.425 an ounce. Silver was flat last week.

Last week, President Donald Trump rocked headlines when he announced that “trade wars are good, and easy to win!” He told US executives on Thursday that he plans to introduce a 25% tariff on steel imports and a 10% levy on aluminum. In light of his recent tweet, some analysts say that he is only using threats of a tariff as a bargaining chip for the stalled North American Free Trade Agreement (NAFTA) negotiations. It is still creating uncertainty in the markets.

Over the weekend, the Italian general election was held, and the result was a hung parliament. This delivered the anti-EU, anti-migrant movements a victory that could amplify its momentum since the governmental leadership will require the support of the populist political parties.

Experts note that gold’s surge was capped from latest news that Australia, the world’s second-largest producer, could ramp up output as global demand rises.

The market appears to be shorting the main precious metals. According to the latest US Commodity Futures Trading Commission (CFTC), hedge funds and money managers slashed their net long positions in gold, while increasing their net short positions in silver.

Investors will look ahead to the upcoming non-farm payroll data, which could guide the Federal Reserve’s decision-making pertaining to interest rates.

If you have any questions and comments on the commodities today, use the form below to reply.


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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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