Gold pared gains as U.S. Treasuries rose after the United States and Mexico struck a trade deal, with ongoing U.S.-China tensions would continue to weigh.
MCX Gold Repot – Gold support key ₹ 29860 and below same could see a test of ₹ 29740 levels and Resistance key is now likely to be seen ₹ 30210, a move above could see prices testing ₹ 30330.
U.S. Treasury yields rose across maturities to weekly highs as global trade war fears abated a day after the United States and Mexico reached agreement on an overhaul of the North American Free Trade Agreement (NAFTA).
The easing of trade tensions prompted investors to reduce safe-haven positions in U.S. government debt. Sales of long-term Treasuries in particular pressured prices and drove yields up more at the long end of the curve, indicating bullishness about the economic outlook.
U.S. and Chinese officials ended two days of talks last week with no major breakthrough as their trade war escalated with activation of another round of duelling tariffs.
The dollar, which had risen recently on safe-haven buying from investors nervous about the trade dispute and U.S. interest rate hikes, slipped to four-week lows on Tuesday after a trade deal between U.S. and Mexico. In recent months, investors have sought safety from global trade conflict in U.S. Treasuries, which entails buying dollars.
In Washington, Canada’s main trade negotiator was in talks to preserve a three-nation North American Free Trade Agreement following Monday’s deal between the United States and Mexico. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.62 percent to 759.87 tonnes on Tuesday from Monday.
