Gold Lower as Trade and Brexit Optimism Put Pressure

Gold traded lower on Tuesday as market participants awaited clarity on U.S.-China trade talks and as earnings season starts on a positive note.

Gold for December delivery on Comex GCZ19, -0.89% was off $6.50, or 0.4%, at $1,491.10 an ounce, while December silver SIZ19, -1.52% gave up 18.5 cents, or 1%, to trade at $17.525 an ounce.

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, +1.46% fell 2.9 basis points to 1.701%. Lower yields on government debt can be a positive for assets like gold that offer no yield.

But a positive start to stocks as earnings season begins in earnest appeared to rob gold of some haven appeal, while investors also attempted to pin down the state of U.S.-China trade negotiations after initial optimism over a partial deal at the end of last week faded.

Via MarketWatch

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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