Gold prices spiked above $1300 in the second week of April 2019, with Gold Spot (XAU) rising from the level of $1291.78 (Day’s low on 8th April) to the level of $1303.78 (Day’s High on 8th April), the prices are currently hovering at $1301.
The factor which provided a push to the gold prices was the demand from the U.S. President Donald Trump from the U.S. Federal Reserve to end the stagnancy in interest rate and ease the policy and decrease the interest rate. The dollar prices plunged quickly over the demand of the U.S. president, which in turn, led a high bid on gold prices.
Dollar Index (DXY) fell from the level 97.40 (Day’s high on 8th April) to the level of 96.98 (Day’s low on 8th April) and then further dropping to the current level of 96.96.
The demand from the U.S. president jolted the market participants as the FED initially halted the interest rate due to the slowdown in the global economy. In the absence of any strong recovery sign in the economy, the demand to slash the current levels of interest rate created a slight reaction in the global equity markets as well.
The pressure across the global equities turned the gold lustre bright and attracted investors to hedge the potential interest rate risk, which in turn, supported the gold prices.
Apart from the demand of the U.S. president Donald Trump, the headline in media houses that China further expanded its gold reserves on previously betting Russia, brought optimism among market participants and supported gold prices.
Due to the duo event,s the gold prices finally climbed above the psychological level of $1300 dollar. Not just the spot, the U.S. president’s unhappiness over the prevailing interest rate environment led the futures prices to rise as well in the international market.
The uncertainty over the next interest rate movement, caused by the bilateral disagreement between the FED and the U.S. president over the interest rate, led the COMEX Gold Future (GC) prices above its previous day high of $1302.10 to the present level of 1305.90.
Most of the gold miners on the Australian Stock Exchange traded higher, as one of the supportive factors, i.e., Gold prices turned upside.
Gold Road Resources (ASX: GOR) opened on the ASX at A$0.925; the share prices of the company rose to mark the day’s high of A$0.950, before ending the session on the day’s high, up by 3.26% as compared to its previous close.
Cardinal Resources (ASX: CDV) marked the starting of the day’s session at A$0.360, up by 2.86% and ended the day session on the same prices after marking a low of A$0.355.
Newcrest Mining (ASX: NCM) started the day’s session at A$24.960; the share prices surged to mark the day’s high at A$25.270, before settling at A$25.200, up by 1% as compared to its previous close.
Bullion investors are eyeing on the Weekly U.S. Unemployment claims along with the outcomes of ongoing trade talks between the U.S. and China to gauge the direction of gold prices ahead.
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