Gold price jumps above $1500, risk-off back in vogue

New York (Oct 8)  Fresh bids emerged once again around $ 1488 levels, allowing a strong bounce in Gold in a bid to test the $ 1500 mark.

A major turnaround in the risk sentiment rescued the gold bulls after China’s Foreign Ministry hinted at retaliation to the US’ blacklisting of the 28 Chinese firms. The Chinese statement triggered a fresh risk-off wave in Europe and boosted flight to safety. This comes ahead of the resumption of the US-China trade talks this Thursday.

Further, increasing odds of a no-deal Brexit amid growing disagreement between the EU and the UK over N. Irish Customs Union keep the investors looking for safety in the traditional safe-haven gold.

The broader market sentiment could likely have a significant influence on the gold trades heading into the US PPI release and the Fed President Powell’s speech, which may offer fresh cues on the US interest rates outlook, in light of the recent downbeat US fundamentals.

FXstreet

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