Gold demand amid the flight of investors from risky assets

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No sooner had the financial markets come to life as the flight from risk has resumed after a short pause on wall street where futures settled in negative territory. Gold, the yen and the franc are in demand again, however, moderate. The dollar was mostly under pressure. Russian stock indexes at the start of trading, trying to ignore the outside negativity and downward momentum in the oil market, but the recovery looks fragile and uncertain.
European currencies were modest bullish bias due to the absence of pronounced interest to buy dollar.
For the American currency presses another escalation of trade tensions between China and the United States. Washington has promised to introduce new import duties for goods from China, and she has threatened to respond to defensive measures, too, at $ 50 billion.
In such a tense situation the dollar fails to attract buyers ahead of Friday’s statistics on the labor market. Today, ADP will release its employment report U.S. private sector, which traditionally generates the expectations of the players before the key release. Also from the topic of trade wars dollar pairs can be a distraction indicators of business activity in the services sector and the speeches of the fed Bullard and Maester.
In the short term, the segment’s risk assets will remain under threat. Potential recovery of oil prices too low, considering that the concerns about the world economy because of trade conflicts has spread in the commodities segment.
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Sergey Kostenko,
Investment analyst
GLOBAL FX