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Gold Drops From 14-Month High

Author:
Eray Bekir
Investors

Gold fell 1% on Monday, retreating from a 14-month peak hit in the previous session after a deal between the United States and Mexico to avert a tariff war prompted investors to ditch the safe-haven metal for riskier assets.

Spot gold was down 0.9% at $1,328.41 per ounce. In the previous session, it hit its highest since April last year at $1,348.08 an ounce.

The United States and Mexico struck a deal on Friday to avert a tariff war, with the latter agreeing to expand a controversial asylum programme and deploy security forces to stem flows of illegal migrants from Central America.

“The U.S.-Mexico trade breakthrough has improved risk appetite for investors, as it shows a deterioration in trade war fears,” said Jameel Ahmad, global head of currency strategy and market research at online forex trading broker FXTM.

“Assets such as gold have fallen… after what has been a very good couple of weeks for traditional safe haven assets,” he added.

As long as gold remains above chart support at $1,320 and $1,300, positive technical momentum should underpin prices, however, he said.

Source: www.cnbc.com

 

 

International Financial Markets Department

Euro-Finance Ltd.

forex@eurofinance.bg

www.eurofinance.bg 

*This material should not be considered as a recommendation for buying/selling securities.