The price of gold came under pressure on speculation of a meeting of leaders of the United States and the DPRK
The next attempt of growth of gold fell. Metal attracts sales growth and is experiencing difficulties with the resumption of the rise in the conditions of stabilization of world financial markets after the meltdown in early February, and the recent wave of sales on the subject of tariffs trump.
Appearing this week on talk of a possible upcoming meeting of the leaders of the United States and North Korea gave investors hope to address the threat of nuclear war, and it has positions of precious metals as a protective asset. However, “until the end of may” can come any conflicting information on this subject, including the cancellation of the talks if Kim not to comply with “certain requirements” of Washington.
In the longer term, the yellow metal sees the support of China. According to forecasts, this year China’s economy growth will slow, which will serve as a signal of the deterioration of the global economy and impact on investor sentiment. Last month activity in the manufacturing sector fell to the lowest in 1.5 years values, raising concerns about a sharper than expected at this point, slowing down the second largest economy in the world.
In this context, traders for gold will closely monitor incoming Chinese statistics to assess prospects for performance degradation. Tomorrow morning China will publish fresh data on retail sales, industrial production and foreign direct investment. If the figures reflect the deterioration, demand for gold locally will increase and this will create an opportunity for sales growth in terms of improvement of health of the dollar.
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