Gold prices have surged to reach a new record high during the early European Tuesday session, approaching $1350.
The commodity’s recovery and positive traction were influenced by a couple of factors, including a rebound from an intraday low of $1333 during the previous session. Additionally, the US Dollar experienced new selling pressure after the release of the Empire State Manufacturing Index, and the commodity’s demand was underpinned.
Another factor that supported the yellow metal’s flows was a new decrease in US Treasury bond yields, reinforcing expectations of the Fed cutting interest rates before the end of the year.
Furthermore, amidst fears of escalating Middle East geopolitical tensions and reviving safe-haven demand, the ongoing trade tensions between the two largest economies in the world also played a part in boosting the precious metal and supporting the favorable up-move.
The Secretary of US commerce, Wilbur Ross, turned down any potential breakthrough following his meeting with United States President Donald Trump and the Chinese counterpart ahead of the G-20 summit, indicating that the trade tensions between the US and China showed no signs of a possible decline.
However, it remains unknown whether the bulls will capitalize on this encouraging momentum or desist from making additional aggressive bets, as the market remains focused on the critical event risk of the week – the updated FOMC monetary policy.