FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
43,004,049Confirmed
1,155,558Deaths
31,709,367Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
Comex Gold

Gold futures are edging lower Tuesday after giving back earlier gains. Aggressive, counter-trend traders tried to generate some buying interest earlier in the session after yesterday’s steep plunge, but there wasn’t enough interest to sustain the move. A weaker U.S. Dollar was the spark behind the rally, but a turnaround in the greenback helped squash those gains.

At 06:52 GMT, December Comex gold futures are trading $1908.40, down $2.20 or -0.12%.

Gold slumped over 3% on Monday, sliding to its lowest level in more than a month, as a broader market sell-off driven by uncertainty over more U.S. fiscal stimulus pressured the precious metal along with a stronger U.S. Dollar.

Let’s face it, we’re seeing a repeat performance from March/April when stock market weakness led investors to sell gold to cover losses and meet margin calls. We’re also seeing investors favor the Japanese Yen, U.S. Dollar and Treasurys for protection, destroying those investors that still think gold is a safe-haven asset. We all know it’s not, it’s a store of value to be used to provide funds when riskier assets fail to do so.

Timely Fiscal Stimulus Not Likel

Ginsburg’s death could lead to a tie vote when the Supreme Court hears a challenge to the constitutionality of ACA in November.

Congress has for weeks remained deadlocked over the size and shape of another coronavirus-response bill, on top of the roughly $3 trillion already enacted into law.

Advertisement

Daily Forecast

Most of the focus for gold traders will remain on the direction of the U.S. Dollar and appetite for risk. There are economic reports, but the catalyst behind the movement in the greenback and stock market is most likely going to be Fed Chair Jerome Powell’s testimony before Congress.

The Federal Reserve remains committed to using all the tools at its disposal to help the U.S. economy recovery from the blow delivered by the coronavirus pandemic, Chair Jerome Powell said on Monday.

“We remain committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible, and to limit lasting damage to the economy.”

Powell said in remarks released ahead of Tuesday’s appearance before the House of Representatives Financial Services Committee, the first of three days of testimony to Congress this week.

If that’s all Powell is going to say then there is risk to the downside for gold because that’s what he said last week when the dollar rose and gold collapsed.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US