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Gold prices and the U.S. dollar both slipped on Monday as the United States is set impose a new round of tariffs on Chinese imports.
Gold futures for December delivery were down 0.14% to $1,199.4 per troy ounce at 12:50AM ET (04:50 GMT) on the Comex division of the New York Mercantile Exchange.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, traded 0.04% lower to 94.47.
Asian equities also traded mostly lower on the tariffs news, with China’s Shanghai Composite, the Shenzhen Composite and Hong Kong’s Hang Seng Index all fell more than 1%.
Gold prices slipped on Tuesday while the U.S. dollar was also slightly weakened against the yen ahead of a monetary policy decision from the Bank of Japan.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $0.80, or 0.07%, to $1,220.50 a troy ounce.
Meanwhile, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, fell 0.01% to 94.13 on Tuesday, off a one-year high of 95.656 touched on July 19.
The Bank of Japan is expected to trim its inflation forecasts later in the day and consider changes to its stimulus program, earlier reports suggested.
Dollar-denominated commodities such as gold are sensitive to moves in the dollar. A fall in the dollar makes the yellow metal cheaper for holders of foreign currency, raising demand.
Looking ahead, the U.S. Federal Reserve begins its two-day monetary policy meeting later on Tuesday. The central bank is largely expected to stand pat on monetary policy.
The U.S. central bank has raised benchmark lending rates twice this year and markets expected two more hikes by the end of 2018.
Higher U.S. rates tend to push the dollar higher, making greenback-denominated gold more expensive for holders of other currencies.
Oil prices headed lower in European morning trade on Friday as concerns about a China-U.S. trade war and the return of Libyan oil to the market offset a warning about a shortage in global crude supplies despite increases in production from the Organization of Petroleum Exporting Countries.
New York-traded West Texas Intermediate crude futures fell 16 cents or 0.23% to $70.17 a barrel.Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded down 73 cents or 0.98%, to $73.72.
In other energy trading, gasoline futures fell 0.79% $2.0572 .while heating oil lost 0.81% to $2.1060 a gallon.
Lastly, natural gas futures dipped 0.04% to $2.796 per million British thermal units.
This time it is the dollar weakening across the board. GBP/USD has also posted a high of 1.3292, USD/CHF has fallen to a low of 0.9955 while AUD/USD has pared gains for the day to now close in on session highs at 0.7477.
The dollar index is now at session lows down 0.2% on the day. Even the kiwi and loonie are paring back some losses against the dollar now.
There aren't any headlines crossing the wires to have brought about the change but selling as the dollar index touched above 95.00 again is one of the things that you can point to. Apart from that, there's the trade rhetoric still as reports say that the White House is to issue a second list of tariffs against China. That has also brought US equity futures lower on the day. S&P 500 futures are now trading 0.4% lower.
As for EUR/USD, as long as price sticks near the 1.1600 handle this could still be a level of interest as there are large expiries on the day here. So, let's see how things develop.
Based on the early price action, the direction of the July WTI futures contract is likely to be determined by trader reaction to $64.92 and $64.77.
Crude oil futures are trading higher shortly after the regular session opening on concerns about a possible steep drop in exports from Venezuela. Offsetting some of this potential supply disruption is surging U.S. production, which hit another record last week, according to the U.S. Energy Information Administration.
The main trend is down according to the daily swing chart. However, traders may be trying to shift momentum to the upside with the formation of the closing price reversal bottom on Tuesday.
The chart pattern was confirmed on Wednesday, but there hasn’t been a follow-through move yet. Crude oil is trading inside yesterday’s wide range which suggests investor indecision and impending volatility.
A trade through $64.22 will negate the chart pattern and signal a resumption of the downtrend. The minor trend changes to up on a trade through $68.67 and the main trend will change up on a move through $72.90.
The market is trying to establish support at a pair of 50% levels at $64.77 to $64.92. Resistance is a Fibonacci level at $66.00, followed by a series of rising 50% levels at $66.45, $67.32 and $68.56.
A sustained move over $64.92 will indicate the presence of buyers. If this generates enough upside momentum, we could see a move into $66.00, followed by $66.45. The latter is a trigger point for a possible acceleration to the upside with $67.32 the next likely upside target.
A sustained move under $64.77 will signal the presence of sellers. This could drive the market into the minor bottom at $64.22. Look for an acceleration to the downside under the bottom with $63.03 the next target.
The euro pushed higher on Monday as markets shrugged off concerns over escalating trade tensions as signs of strength in the U.S. economy bolstered risk appetite.
EUR/USD was up 0.24% to 1.1687.
The dollar was a touch lower against the safe haven yen, with USD/JPY edging down to 109.46 from an overnight high of 109.77.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.18% to 93.99 after rising 0.22% on Friday.
The pound was little changed against the dollar, with GBP/USD last at 1.3351.
The risk sensitive Australian dollar was higher, with AUD/USD gaining 0.82% to trade at 0.7629, while the New Zealand dollar was also higher, with NZD/USD up 0.43% to 0.7012.
Gold prices reversed early gains on Thursday, falling back towards the lowest levels since December as a stronger dollar and rising U.S. government bond yields continued to weigh on demand for bullion.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange were down $3.50 or 0.27% to $1,288.00 a troy ounce, off an overnight high of $1,293.70.
The precious metal plumbed a low of $1,285.70 on Wednesday, the weakest level since December 27.
Gold has slumped as expectations of higher U.S. interest rates have pushed up bond yields and the dollar.
Higher Treasury yields can spell weakness for Gold which, like other commodities, offers no yield, while a stronger U.S. currency makes dollar denominated gold more expensive for overseas buyers.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was last at 93.21, within close reach of Wednesday’s five month peaks of 93.52. The index is up around 0.93% so far this week.
The yield on 10-year U.S. Treasury notes rose as high as 3.117% overnight, the highest level since 2011. Bond yields move inversely to prices.
Yields have climbing higher since the Federal Reserve said at its May meeting that inflation is moving closer to its 2% target.
The Fed raised rates in March and projected two more rate hikes this year, although many investors see three hikes as possible.
In other metals trading, July silver futures were almost unchanged at $16.37 a troy ounce, while July platinum futures were trading at $889.20, little changed for the day. July copper futures were up 0.24% at $3.078 a pound.
The dollar was holding steady near three-and-a-half month highs against a basket of the other major currencies on Thursday, supported by higher Treasury yields as the U.S. 10-year bond yield held above the 3% level.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading at 91.02 , within close reach of Wednesday’s highs of 91.04, the most since January 12.
Demand for the dollar continued to be underpinned by rising U.S. yields and the prospect of a faster pace of rate hikes by the Federal Reserve this year.
Expectations of higher interest rates make the dollar more attractive to investors seeking yield. The yield on 10-year U.S. Treasury notes rose above 3% for the first time since 2014 this week, a sign of confidence in the outlook for the U.S. economy.
The dollar eased against the yen, with USD/JPY dipping 0.11% to 109.31 after setting a fresh two-and-a-half month high of 109.46 overnight.
The euro was little changed against the dollar, with EUR/USD last at 1.2167, not far from Wednesday’s two-month trough of 1.2158.
Investors were looking ahead to the European Central Bank’s monetary-policy meeting later Thursday to gauge whether officials are growing more confident on the inflation outlook.
The ECB was expected to keep monetary policy unchanged and indicate that it is still on track to wind up its bond purchasing stimulus program by the end of the year.
The pound was trading at five-week lows, with GBP/USD last at 1.3923, almost unchanged for the day.
The Australian dollar was holding above the previous sessions four month trough, with AUD/USD last at 0.7561.
The New Zealand dollar plumbed fresh four month lows, with NZD/USD sliding 0.14% to 0.7058.
The dollar was higher on Friday as the yield on U.S. Treasury notes rose to February levels and interest rate expectations offset trade war worries.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.27% to 89.88.
EUR/USD falling 0.30% to 1.2308 as investors worry that the euro zone’s economy is rebounding and the European Central Bank could wait to tighten monetary policy.
Elsewhere, the Australian dollar was lower, with AUD/USD down 0.44% to 0.7694 while NZD/USD decreased 0.69% to 0.7221.
Crude Oil WTI Futures gained 0.58% to $64.67 a barrel by 5:37 AM ET (9:37 GMT). Brent crude futures, the benchmark for oil prices outside the U.S., rose 22 cents, or 0.32%, to $69.13 a barrel.
In other energy trading, gasoline futures rose 0.40% at $2.0165 a gallon, while heating oil increased 0.30% to $1.9954 a gallon. Natural gas futures slipped 0.27% to $2.613 per million British thermal units.