Gold prices dip in Asia as traders look for sidelines ahead of Fed
During Thursday’s Asia trade gold dipped with investors staying cautious ahead of the Fed’s review on its interest rate this month.
In New York, June delivery gold futures tumbled 1.07% to about $1,234.90 per a troy ounce. As for May delivery silver futures traded at $16.095, showing a 1.41% sag. Meanwhile, copper futures trading at $2.164 per pound demonstrated a 0.28% dip.
On Wednesday, gold dared to fall abruptly amid a stronger greenback. It’s because in China stellar trade data eased longstanding worries as for slowing growth in this country. It definitely understated gold’s appeal as a true safe asset.
By the way, in China the upbeat reading boosted struggling metal shares and also provoked a short squeeze among equities in Hong Kong. As a result, in Hong Kong the SEHK close +3%, while the Shanghai Composite Index closed +1.4%.
The surge also impacted the EU markets because traders stood away from safe-have positions, shifting to riskier assets. The Stoxx 600 Index grew 2.5%, while the FTSE 100 ended up +2%.