By 0650 GMT, the spot price of gold was stable at $ 1731.50 an ounce, after rising 0.5 percent earlier in the day due to renewed US-China trade tensions and global stimulus measures. And US gold futures fell 0.1 percent to 1733.30 dollars.
Virus vaccine news
Stephen Enns, chief market strategist at Axi Corp Financial Services, said that despite news of a potential Corona virus vaccine that has fueled stock market boilers, gold will continue to receive a relatively high turnout given the “extremely massive” US Federal Reserve spending.
Palladium rose 0.7 percent to $ 2026.88 an ounce, after jumping more than nine percent during Monday’s transactions.
And platinum fell 0.4 percent to $ 814.67, and silver fell 0.7 percent to $ 17.05 an ounce.
In addition, the dollar incurred losses against the major currencies on Tuesday after encouraging results from experiments on a vaccine for Covid-19, which improved sentiments and gave a positive boost to high-risk assets.
The euro maintained significant gains against the Swiss franc and the dollar, after a proposal by France and Germany for a 500 billion euro (543 million dollars) economic recovery fund to provide grants to regions most affected by the Corona virus crisis.
Currencies linked to primary commodities and other high-risk assets in general were supported, also benefiting from a strong recovery in oil prices as investors turned their attention back to recovering from the pandemic.
Dollar financing costs
“There is a significant improvement in the appetite for risk, thanks to hopes for a vaccine,” said Junichi Ishikawa, chief foreign exchange strategist at IG Securities in Tokyo. Fluctuations in stocks and costs of dollar financing are falling. It is easy for the dollar to fall and other currencies to take advantage of the dollar’s losses and rise. ” The euro recorded 1.0913 dollars on Tuesday, after rising 0.9 percent against the dollar in the previous session.
The single currency hit 1.0613 Swiss francs after Monday jumped to its highest level in more than two months.
The rise of the euro came after France and Germany proposed that the European Commission borrow on behalf of the European Union as a whole for the Economic Recovery Fund.
The British pound also benefited from the dollar’s losses and rose to $ 1.2204, but traders are preparing for the British jobs data.
The dollar was little changed, at 107.39 yen.
The yuan settled at $ 7.1090 on the domestic market. And investors in the dual currency are still concerned about the heightened tensions between the United States and China over trade policy and criticism directed at China’s handling of the Corona crisis.