Gold price slips below $1325 amid Fed rate cut speculations

June 11, 2019

New York (June 11)  Gold finally broke down of its Asian session consolidation phase and retested its immediate horizontal support near the $1325-24 region in the last hour.

The precious metal remained depressed for the second consecutive session on Tuesday and added to the overnight heavy losses - led by fading safe-haven demand amid encouraging trade-related development.

The US President Donald Trump suspended plans to impose tariffs on Mexico after the two countries reached an agreement on immigration and provided a strong boost to the global risk sentiment on Monday.

The risk-on mood was evident from a solid rebound in the US Treasury bond yields, which underpinned the US Dollar demand and exerted some additional pressure on the dollar-denominated commodity.

The yellow metal dropped to the mentioned support, albeit Trump's fresh threat to raise tariffs on imports from China extended some support and helped stage a late rebound during the US trading session.

The uptick, however, lacked any strong follow-through rather fizzled out quickly amid persistent improvement in the investors' appetite for riskier assets, as depicted by a positive mood around equity markets.

AozNews

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