Gold Falls on US dollar and Risk Appetite Rebound

Gold fell on Tuesday after investors sold safe havens in search for higher yields. The yellow metal could not capitalize in disappointing US data as consumer confidence came in lower than expected nor on Brexit concerns as the UK parliament is setting up a vote to gauge alternatives to the proposal from Prime Minister May.

Brexit fatigue is setting in as the deadline has been pushed back, but the lack of momentum towards a practical solution does not appear close. Gold will remain sensitive to major swings on Brexit triggered decisions if parliament can’t offer anything more comprehensive that the deal that has been on offer for months.

Recession fears eased despite the yield curve inversion and the dollar rose putting downward pressure on gold. Investors will keep tracking gold as US-China trade and Brexit uncertainty still make the metal a valid refuge during volatile times.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza