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Commodity: Gold Near Its Two-Week Low On Firm Dollar

May 22, 2019 | Wednesday

Commodities

   

On Wednesday, the gold turns closer to its two-week low. That with easing China-U.S. dispute impacting the demand for bullion even before the United States Federal Reserve's meeting.

The spot gold went down by 0.1 percent then amounting to $1,273.70 an ounce during 02:39 GMT. During the last session, the metal fell to its lowest since May 3 amounting to $1,268.97. Meanwhile, the United States gold futures steady at $1,273.30 per ounce.

The U.S. dollar closes to its four-week peak with support from higher U.S. yields. That of which inclines overnight upon the United States lessens trade restrictions on Chinese tech giant - Huawei Technologies.

According to Jeffrey Helley, an OANDA analyst, the firm U.S. dollar and the 90 days extension of Washington to Huawei put "the knife into gold."

The U.S. Department of Commerce allowed Huawei to purchase American-made goods until the 19th of August. This decision aims to provide telecom operators depending on Huawei time to find and shift to alternative arrangements. Helley also said that the market is looking at it as an "ease" on the trade tension.

On Tuesday, Chinese Ambassador at the United States Cui Tiankai said Beijing is ready to resume trade talks with Washington. Later on, blaming the frequent change of mind on a tentative agreement.

As if now, the gold is more than 5 percent lower its February 2019 highs at $1,346.73 an ounce. Meanwhile, investors wait for the Feds to release its insights on May 1 meeting of the central bank. That when policymakers are evaluating to keep interest rates still and signals little mood to adjust anytime soon.

On Monday, Fed Chair Jerome Powell restated the unmoved behavior regarding the premature ascertain impact of trade and tariffs implementation on monetary policies.

The SPDR Gold Trust holds the world's largest gold exchange-traded fund. That increases to 0.4 percent at 739.69 tonnes last Tuesday.

   

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