Gold prices soared on the global front amid a tariff threat to China from the United States president Donald Trump, and the today’s official statement from Washington, which reiterated the president’s actions and mentioned that the United States would move forward and increase the current tariff of 10% on $200 billion worth of Chinese goods to 25%.
Gold prices recovered sharply in the global market over the event, and the prices of Gold Spot rose from the level of $1277.11 (Day’s low on 6th May 2019) to the present level of $1283.20 (as on 6th May, GMT-4: 3:38 AM New York time).
The president’s actions and the subsequent support from the supporters, exerted pressure on dollar prices, which in turn, provided cushion to the gold prices.
Dollar Index (DXY) plunged from the level of 97.70 (Day’s high on 6th May 2019) to the present level of 97.39 (as on 6th May, GMT-4: 3:40 AM New York time). The fall in dollar prices prompted bullion investors to hold and buy the risk-free gold, which in turn, increased the demand for gold; thereby supporting its prices in the international market.
The jeopardized trade-talks supported the bullion, and bullion market marked an upward movement. Earlier, the silver shinned brighter and gained the leverage against gold prices. The gold to silver ratio (XAU/XAG) dropped from its recent high of 87.04 (Day’s high on 3rd May 2019) to the level of 85.49 on the same day. However, gold prices again took rein and the index increased from the level of 85.49 to 86.54 (Day’s high on 6th May 2019).
As per the current level, the index is hovering around 85.96 (as on 6th May, GMT-4: 3:53 AM New York time), which denotes the shoulder-to-shoulder movement in both silver and gold prices.
Certain gold miners on the Australian Stock Exchange (ASX) welcomed the gold reign in the international market and majority of gold miners surged on ASX.
Miners such as Northern Star Resources Limited (ASX: NST) started the day’s session at A$8.170, the prices traded higher and closed at A$8.400, up by 2.31% as compared to its previous close.
Junior Miners such as Millennium Minerals Limited (ASX: MOY) followed the same trajectory, and the share prices recovered from its recent low of A$0.110 (Day’s low on 6th May 2019) to the level of A$0.130 (Day’s high on 7th May). The share of the company ended the day’s session at the day’s high of A$0.130, up by 13.04% as compared to its previous close.
Troy Resources Limited (ASX: TRY) recovered from its recent low of A$0.084 (Day’s low on 2nd May 2019) to the level of A$0.093 (Day’s high on 7th May). However, the prices plunged from the day’s high by $0.003 to end the day session at A$0.090, up by 5.88% as compared to its previous close.
When few miners enjoyed the gold rally, others failed to gain from it. Miners such as Dacian Gold Limited and Anglogold Ashanti Limited moved in a downtrend.
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