“Gold is confronted with resistance, because higher bond returns and a firmer dollar continue to close a profit,” said Daniel Ghali, a raw material strategist at TD Securities.
Despite the withdrawal, gold that is supported by escalating trade tensions and geopolitical risks remains, factors that continue to feed the demand for safe port of assets.
Silver has almost $ 32, because market uncertainty dollar strength compensates
Silver (XAG/USD) is traded at $ 32.10, after recently touching an intra-day high point of $ 32.04. Just like gold, the Rally of Silver is covered by rising treasury yields and a stronger dollar, which make both raw materials less attractive.
However, geopolitical tensions and trade conflicts offer some support. China, Canada and Mexico have introduced retribution rates in response to new American import tasks, which contributes to global economic uncertainty. Historically, silver benefits from its dual role as a safe port active and an industrial metal, especially in times of market volatility.
“Silver’s prospects are trapped between two opposite forces: a strong dollar -reducing profits and economic risks that the demand for safe haven is increasing,” said Ole Hansen, head of the raw material strategy at Saxo Bank.
Trade conflicts and economic uncertainty keep gold in focus
Despite Gold’s dip, escalating trade conflicts continue to support the question. The US government recently imposed: