Gold firms below $1,500 after slide

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Published: August 20, 2019 8:07:12 AM

Spot gold edged up 0.1% at $1,496.80 per ounce at 0050 GMT.

Gold prices, Spot gold price, Wall Street, US dollar, US government bonds, US gold futures, Asian stocksU.S. gold futures fell 0.4% to ,505.90 an ounce. (Reuters photo)

Gold prices held steady on Tuesday after posting their biggest daily decline in a month in the previous session, plummeting below a key psychological level of $1,500 an ounce.

FUNDAMENTALS

* Spot gold edged up 0.1% at $1,496.80 per ounce at 0050 GMT.

* On Monday, gold skidded 1.2% to reach $1,495 an ounce, below the key level of $1,500. This marked its biggest daily decline since July 19.

* U.S. gold futures fell 0.4% to $1,505.90 an ounce.

* Asian stocks got off to a bright start after Wall Street rallied on Monday, with the S&P 500 gaining 1.21%.

Also read| Global markets: Asian shares nudge higher on stimulus hopes, recession fears ease

* Market sentiment is likely to remain positive as bond yields are rising globally and the U.S. Treasury yield curve is no longer flashing signs of a recession.

* The focus shifts to U.S. Federal Reserve meeting minutes due on Wednesday. Traders will also watch the Fed’s Jackson Hole seminar and a Group of Seven summit this weekend for clues on what additional steps policymakers will take to bolster growth.

* Traders see about an 86% percent chance of a 25 basis-point cut in September.

* Senior White House officials are discussing a temporary payroll tax cut to boost the economy, the Washington Post reported on Monday.

* Hopes for more stimulus are rising after reports that Germany is prepared to increase fiscal spending, and after the China’s central bank unveiled a key interest rate reform to lower corporate borrowing costs and support a slowing economy.

* The U.S. dollar held near a three-week high on Tuesday, as expectations of fresh global stimulus, and an improvement in appetite for riskier assets lifted yields on U.S. government bonds.

* Refinitiv data shows an Iranian tanker that was detained in Gibraltar is now on its way to Greece, but the U.S. State Department has warned that any assistance to the vessel could be considered as providing support to a U.S.-designated terrorist organisation.

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