Gold price hurt by easing trade fears, soft dollar, treasury yields

London (Apr 24)  Commodities brokerage SP Angel pointed to easing fears of an escalating global trade conflict after U.S. Treasury Secretary Steven Mnuchin hinted at a truce with China.

 In particular, analysts cited news that Mnuchin announced a trip to China at a time when markets fear that a trade war could harm the global economy, with Mnuchin expressing cautious optimism on prospects of an agreement.

 According to Commerzbank, a firm U.S. dollar and still-rising yields on 10-year U.S. Treasuries – the latter are nearing the 3% mark – are putting pressure on gold as the new week begins.

 The gold price is therefore continuing the correction it began mid-last week and is trading at a good $1,330 per troy ounce this morning.

 One role in the falling gold price is presumably being played by the further signs of detente in the North Korean conflict after North Korea’s leader Kim Jong-un announced at the weekend that no further nuclear weapon testing would be carried out for the time being.

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