International spot gold held a consolidation below $1,290 on Wednesday (April 19). After the gold price continued to rise, the high profit margin emerged. The situation in North Korea tends to be complicated. Before the French election, investors traded cautiously.
As of 13:30 Beijing time, spot gold fell nearly $3 to $1,285.39 per ounce. On Monday, the gold price hit a high of $1,295.42 since November.
The US dollar index was hovering near the three-week low as the US housing starts data in March was disappointing and the US-Japan trade talks made investors nervous.
At the beginning of the US session, more than 22,000 gold futures contracts were sold off on Tuesday, with a nominal value of nearly $3 billion. At present, the net long position of COMEX gold has risen to a new high in early November. After the speculators bought it, the market fabrics were selling at a high profit.
US Vice President Burns appeased Japan on Tuesday, and the United States pledged to contain North Korea’s development of nuclear weapons and missiles. Earlier, Burns warned that the United States’ fight against Syria and Afghanistan demonstrated the determination of the United States. After North Korea failed to test missiles on Sunday, the market is concerned about the next move by the United States.
British Prime Minister Teresa May demanded an early election, adding another uncertainty to investors who were worried about geopolitics and many other factors.
The BMO Capital Markets released a report on Tuesday to maintain a forecast for the 2017 average price of gold, which is lower than the current price. Although the gold market is currently rising due to geopolitical support, the Fed’s interest rate hike is expected to have some pressure on gold, and gold may be withdrawn before the Fed’s FOMC meeting.
This week's French election will become the focus of the market. The polls show that the middle-ranking Mark Long has the highest support rate, and the far-right candidate Le Pen is ranked second. The extreme left Mei Langxiong is tied for third place with the middle right. Deutsche Bank warned that the current market may underestimate the possibility that Le Pen and Melangon will win the first round and join hands in the second round.
It is worth noting that silver prices are approaching a five-month high, and hedge funds' bullish bets on silver have also hit record highs, but it is still difficult to stop ETF investors from escaping. The world's largest silver ETF, the iShares Silver Trust's position, has experienced a capital outflow for seven consecutive months, the longest decline in more than a decade.
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