Before recovery, gold touched the lowest level since August. Despite the small upward momentum, precious metal is on way to close its worst month this year. The reasons are two. On the one hand, the rising stock market raise the risk appetite among investors and they reduce their hedging positions, and on the other hand, the ever-increasing speculation that the Fed will raise interest rates will make dollars rising, which in turn suppresses the rise of dollar-denominated bullion. The overall decline is 2.6% at the beginning of September, and if the stock market continues to rise in the future, it is very likely that we will see a deeper adjustment. We should not exclude possible provocations and escalation of tensions between the United States and North Korea, which are capable of raising the price sharply.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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