Gold spikes to over 1-month tops, weaker USD/trade war fears supportive
Friday,
23-Mar-2018
02:29 PM (IST)
Gold finally broke out of its Asian session consolidation phase and spiked to over one-month tops in the last hour.After yesterday's modest pull-back, a fresh wave of US Dollar selling pressure was seen underpinning demand for dollar-denominated commodities - like gold. Adding to this, the US President Donald Trump's anti-China tariffs revived fears of a full-blown trade war and triggered a fresh wave of global risk aversion trade, which provided an additional boost to the precious metal's safe-haven appeal.The risk-off mood, as depicted by a selloff across global equity markets, was further reinforced by a follow-through retracement in the US Treasury bond yields and remained supportive of the strong bid tone surrounding the non-yielding metal.
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