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Market Euphoria Weighs On Gold

Market Euphoria Weighs On Gold

As the stock market continues…

Michael Kern

Michael Kern

Safehaven

Michael Kern is a newswriter and editor at Safehaven.com, Oilprice.com, and a writer at Crypto Insider. Michael has several years of experience covering cryptocurrencies, and…

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Positive Economic Data Weighs On Gold

Gold

Rising U.S. dollar indexes and restored expectations of a trade war resolution has weighed on gold rates, with the rare-earth metal plummeting to three-month lows.

A promising U.S. economic report revealed that traders and investors are growing more comfortable with risk, keeping safe-haven assents under pressure.

A higher U.S. dollar index is an added bearish element for the precious metal markets.

Expectations for Washington and Beijing to patch up trade war worries have bolstered stock-market gains, another element which is undermining gold's status.

Reports show that President Trump is likely to announce a strategy to sit down regarding a potential trade deal with China's president, Xi Jinping when he meets with the nation's vice premier on Thursday afternoon. However, there are still major difficulties to overcome in order to dispel U.S. desires to keep tariffs on Chinese products.

Despite the numerous unknowns still on the table, speculation in recent days for advancement in trade talks enhanced the desire for stocks, while the U.S. dollar twisted between gains and losses before firming Thursday and further weighing on rare-earth elements. Related: Turkey Blames The West For Pre-Election Lira Volatility

Traders and investors worldwide are still exceptionally positive, due in part to confidence the U.S. and China will quickly reach a trade offer.

Jobs report could push gold lower

Market observers are awaiting the U.S. Labor Department's job report for March, which is set to be published early Friday.

It's likely the most significant economic report of the month. The important non-farm payrolls number in the report is projected to be up 175,000 in March, with the unemployment rate likely to stay at 3.8 percent, which could further weigh on the price of gold.

The ADP national employment report for March released on Wednesdaypredicted  an increase of 129,000 jobs. The payrolls number was forecast to be up 173,000.

By Michael Kern for Safehaven.com

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