Gold futures dipped to start the trading week despite the yellow metal gaining momentum on Friday. Even with investors concerned about a potential trade war and the recent Italian election results threatening the integrity of the European Union (EU), gold prices were unable to take advantage.
April gold futures tumbled $3.10, or 0.23%, to $1,320.30 per ounce at 16:23 GMT on Monday. Gold spiked on Friday, helping trim its weekly loss to just 0.5%.
Silver, the sister commodity to gold, is also trading lower to kick off the trading week. May silver futures slipped $0.041, or 0.25%, to $16.425 an ounce. Silver was flat last week.
Last week, President Donald Trump rocked headlines when he announced that “trade wars are good, and easy to win!” He told US executives on Thursday that he plans to introduce a 25% tariff on steel imports and a 10% levy on aluminum. In light of his recent tweet, some analysts say that he is only using threats of a tariff as a bargaining chip for the stalled North American Free Trade Agreement (NAFTA) negotiations. It is still creating uncertainty in the markets.
Over the weekend, the Italian general election was held, and the result was a hung parliament. This delivered the
Experts note that gold’s surge was capped from latest news that Australia, the world’s
The market appears to be shorting the main precious metals. According to the latest US Commodity Futures Trading Commission (CFTC), hedge funds and money managers slashed their net long positions in gold, while increasing their net short positions in silver.
Investors will look ahead to the upcoming
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