Spot Price of Gold Down Upon Touching Its Highest During Previous Session
Spot gold price down by 0.1 percent amounting to $1,303.14 an ounce during 01:10 GMT on Wednesday. The declines mostly caused by the fears of investors with the ongoing trade tensions between the United States and Europe. In addition, the International Monetary Fund (IMF) cut its global growth outlook.
Spot Gold Performance
The spot gold during the previous session touches its highest since March 28 amounting to $1,306.09. Meanwhile, the United States gold futures also went down at about 0.1 percent amounting to $1,307.60 per ounce.
US-EU Trade Tensions
Elsewhere, on Tuesday, the United States President, Donald Trump frightened to require tariffs on European Union products worth about $11 billion. That emphasizes the tension on a long transoceanic aircraft payment argument. Including the opening of a new front in Trump’s global trade war.
Meanwhile, the IMF cuts its global economic growth forecasts. Mainly to warn that the growth could go slower soon because of the existing trade tensions along with possible improper British exit from the EU.
On Tuesday, the IMF slightly warned that Britain is to suffer economic damage at about two to three years equivalent of loss starting this year towards the end of 2021. That most possible to occur if it went out of the European Union without having an exit deal.
Meanwhile, the British Prime Minister Theresa May is to be granted by the European Union leaders with a second delay for Brexit. However, there are possible demands for her to accept a longer extension. The same time France pushes for conditions in limiting Britain’s capability to weaken the coalition.
Moreover, on Wednesday, the European Central Bank (ECB) becoming certain in keeping its poly on hold. The ECB takes its time to think through its previous stimulus cocktail being enough to prevent prompt sentiment declines.
Last week, Venezuela took out eight tonnes of gold from its vaults. According to an unnamed lawmaker, the cash-strapped socialist state expects to sell the bulk of gold abroad. It searches for a way to gain hard currency as it currently faces the United States sanctions.
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