Trade wars continue to ferment and US data are poor and spot gold rises-Shanghai Metals Market

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Trade wars continue to ferment and US data are poor and spot gold rises

Translation 03:02:05PM May 27, 2019 Source:Wenhua Finance and Economics
The content below was translated by Tencent automatically for reference.

SMM News: according to foreign news on May 27, spot gold in Asia rose on Monday as the market worried that the delay in the trade dispute between China and the United States would damage risk sentiment, while poor US economic data raised the possibility of the Federal Reserve cutting interest rates.

Spot gold rose 2.265 cents, or 0.18 percent, to $1286.91 an ounce at 13-11 Beijing time, the third straight day of gains.

U. S. futures rose 2. 8 cents, or 22 percent, to $1286.4 an ounce.

"Gold prices have reversed earlier weakness as risk appetite in the market remains fragile," said Benjamin Lu, an analyst at (Phillip Futures) in Singapore. "

"US sanctions against Huawei and other technology companies have heightened trade tensions."

China on Friday accused US Secretary of State Pompeo of spreading rumors after Pompeo said Huawei founder Ren Zhengfei lied about his company's relationship with the Chinese government.

A series of weak economic data released by the United States late last week raised expectations that a trade war with China could begin to hurt the country's economy and raised bets on the Fed's interest rate cut.

Over the weekend, Trump once again complained that Fed policy has left the U. S. economy without full firepower.

The official preliminary results of the European Parliament elections released on Sunday showed that parties that pledged to strengthen the European Union won 2/3 of the seats in the European Parliament, despite a sharp increase in the number of seats for far-right and nationalist parties.

After British Prime Minister Theresa May announced the timetable for stepping down, the prospect of "Brexit without agreement" soon became the main battlefield for her potential successors. Four of the eight candidates said that Britain must leave the European Union on October 31. Even if it means Brexit without an agreement.

Alfonso Esparza, senior market analyst at OANDA, said: "the increase in political unrest is good for gold, which will jump above $1300 again if the UK power struggle and the Sino-US trade conflict remain highly uncertain."

The dollar struggled against a package of major currencies, falling from a two-year high in the previous session, partly affected by the trade conflict between China and the US, making gold cheaper for holders of other currencies.

A commodities analyst said gold was likely to retest resistance at $1290 an ounce, above which it would rise to the next resistance of $1295.

Trading was quiet on Monday as the UK and the US were closed on holidays.

Hedge funds and fund managers sharply reduced their COMEX net long positions in the week of May 21, the Commodity Futures Trading Commission (CFTC) said on Friday.

In other precious metals, spot silver rose 0.4 per cent to $14.62 an ounce, while spot palladium fell 0.3 per cent to $1330.40 an ounce.

Spot platinum fell 0.3 per cent to $799.13 an ounce.

Trade wars continue to ferment and US data are poor and spot gold rises

Translation 03:02:05PM May 27, 2019 Source:Wenhua Finance and Economics
The content below was translated by Tencent automatically for reference.

SMM News: according to foreign news on May 27, spot gold in Asia rose on Monday as the market worried that the delay in the trade dispute between China and the United States would damage risk sentiment, while poor US economic data raised the possibility of the Federal Reserve cutting interest rates.

Spot gold rose 2.265 cents, or 0.18 percent, to $1286.91 an ounce at 13-11 Beijing time, the third straight day of gains.

U. S. futures rose 2. 8 cents, or 22 percent, to $1286.4 an ounce.

"Gold prices have reversed earlier weakness as risk appetite in the market remains fragile," said Benjamin Lu, an analyst at (Phillip Futures) in Singapore. "

"US sanctions against Huawei and other technology companies have heightened trade tensions."

China on Friday accused US Secretary of State Pompeo of spreading rumors after Pompeo said Huawei founder Ren Zhengfei lied about his company's relationship with the Chinese government.

A series of weak economic data released by the United States late last week raised expectations that a trade war with China could begin to hurt the country's economy and raised bets on the Fed's interest rate cut.

Over the weekend, Trump once again complained that Fed policy has left the U. S. economy without full firepower.

The official preliminary results of the European Parliament elections released on Sunday showed that parties that pledged to strengthen the European Union won 2/3 of the seats in the European Parliament, despite a sharp increase in the number of seats for far-right and nationalist parties.

After British Prime Minister Theresa May announced the timetable for stepping down, the prospect of "Brexit without agreement" soon became the main battlefield for her potential successors. Four of the eight candidates said that Britain must leave the European Union on October 31. Even if it means Brexit without an agreement.

Alfonso Esparza, senior market analyst at OANDA, said: "the increase in political unrest is good for gold, which will jump above $1300 again if the UK power struggle and the Sino-US trade conflict remain highly uncertain."

The dollar struggled against a package of major currencies, falling from a two-year high in the previous session, partly affected by the trade conflict between China and the US, making gold cheaper for holders of other currencies.

A commodities analyst said gold was likely to retest resistance at $1290 an ounce, above which it would rise to the next resistance of $1295.

Trading was quiet on Monday as the UK and the US were closed on holidays.

Hedge funds and fund managers sharply reduced their COMEX net long positions in the week of May 21, the Commodity Futures Trading Commission (CFTC) said on Friday.

In other precious metals, spot silver rose 0.4 per cent to $14.62 an ounce, while spot palladium fell 0.3 per cent to $1330.40 an ounce.

Spot platinum fell 0.3 per cent to $799.13 an ounce.