Gold is slightly higher today after the dollar fell from its weekly highs. The rise today is also associated with risk aversion as traders’ search for yield in alternative places. As you recall, the global financial markets are now on the edge as the world braces for a trade war.
In the recent past, Trump has placed tariffs on goods from China. He has also placed tariffs on steel and aluminum and while the tensions have subsided recently, many investors are thinking about what will come. Already, reports from a Chinese publication indicate that officials are crafting a comprehensive list with American goods to place tariffs on.
At the same time, the yields on US treasuries have fallen from their previous highs. Bitcoin and other cryptocurrencies prices have also dropped to multi-monthly lows. Therefore, as investors look for yield, gold has become an ideal alternative. Year to date, gold has moved up by about 2% while the dollar has dropped by almost 3%. Nonetheless, it has fallen from its monthly high of $1356 to the current lows of $1320.
At this price, there is a likelihood that gold may start moving higher as traders wait for the trade fears to cool off.
The post Gold Slightly Higher in Thin Trading appeared first on Forex.Info.
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