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Investors announced that the US and China are close to reach the trade deal, the precious metals shows a noteworthy loss. The Risk Appetite continues to dominate the market with major stock indexes up. Gold and silver are trading at a much unseen level nowadays. Technical indicators also predicted a decline in the coming days.
As reported by Bloomberg and WSJ, Global optimism stated that US and China are reaching to a trade agreement. China will lower the rates on the US farm goods, autos, chemicals, and other products. China would buy 18 billion dollars in gas from a company in Houston called Cheniere Energy
Global markets cheered news about the imminent agreement; however, former White House and State Department official Philip Levy tweets that the agreement does not mean significant advances for the US in its trade relationship with China
Philip Levy tweeted “This sounds a lot like agreeing the tariffs that came to being since last summer, rather than solving any long-term problems. “So the Trump administration is just extinguishing the fire they started.
The precious metals declined for the fourth consecutive day regardless of the global optimism on US China Trade and Risk appetite. Gold is now trading at 1,286.30, 0.54% negative so far on Monday and at its lowest level since January 25.
The pair is facing losses below the critical support at 1,303.08 which was broken on Friday, March 1st. As FX Empire analyst, James Hyerczyk said in a report, “The jump in Treasury yields also made the U.S. Dollar a more attractive investment, which drove down foreign demand for dollar-denominated gold.”