On Monday, spot gold prices fell by 0.7%. This contract was delivered after the announcement of a new trade deal between US, Canada and Mexico that appeared to shift investor sentiment. Traders are moving their money back into equities and risk on trades. Consequently, this traditional safe haven asset often pursued in times of political and financial turmoil is already seeing the impact.
On Tuesday morning, spot gold was little changed, reflecting a phase of consolidation after a knee-jerk tumble. Some investors are starting to place decidedly bullish bets on a stock market rebound, showing the same degree of bullishness as investors feel about overall economic recovery. As of 8:41 a.m. Singapore time, spot gold was trading at $2,343.91 per ounce, a correction from a previous figure of $3,343.91.
To make matters even more confusing, the U.S. government recently announced a further extension of the 50% tariff deadline on the European Union. This decision will have far-reaching implications on market dynamics. Together, all of these factors have created a cautious but optimistic posture amongst investors when it comes to long-term rental market sentiment.
CNBC reporters Alex Harring and Amala Balakrishner transport you behind the scenes with live reports and expert analysis. Traders and investors alike look at all of these changes for big telltales.
As the situation continues to evolve, market participants remain watchful of how ongoing trade negotiations and economic indicators will affect gold prices and overall market performance. Investors are increasingly shifting focus back to equities signaling some bullish confidence in the recovery from the great recession. Yet gold is still capturing headlines as an essential safe-haven asset amid growing uncertainty.
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