Gold prices hit 2-week low on reopening optimism

Gold price falls to two-week low

"We have seen a clear sign of rising expectations in economic recovery". U.S. gold futures were down 0.5 per cent to $1,697.60. "We're not going to get back to full employment or even an unemployment rate below 10% any time this year and maybe it will take most of next year".

European shares hovered near an 11-week high, while USA stock futures rose 2% and breached a major chart barrier as businesses worldwide gradually reopened following a months-long lockdown. EUROSTOXX 50 futures added 1.3% and FTSE futures 2.4%.

Tech heavyweights Amazon.com, Microsoft Corp and Facebook Inc led the Nasdaq lower, while healthcare and technology stocks were among the S&P 500 sector indexes in the red.

The euro has struggled since falling in March, when investors rushed for the safety of dollars.

Japan's Nikkei .N225 rose 0.7% to 2-1/2-month highs while Australian shares .AXJO hit a similar milestone before giving up most of gains.

Asian shares forged ahead on Tuesday while US stock futures breached a major chart barrier as investors looked past Sino-US trade tensions to more stimulus in China and a re-opening world economy. But analysts say the recovery fund proposals, if they can win over European Union members skeptical of an earlier Franco-German plan, could push the euro higher.

Worsening relations between the world's two biggest economies could further hobble global business activity, which is already under intense pressure due to the coronavirus pandemic. The Australian dollar slipped 0.2% to $0.6640 AUD=D4 .

Indicative of sentiment, SPDR Gold Trust holdings rose 0.4 per cent to 1,116.71 tonnes on Friday, while speculators increased their bullish positions in COMEX gold and silver contracts in the week to May 19.


Oil prices slipped slightly on concerns about U.S. -China stand-off over Hong Kong kept a dampener on market hopes for economic recovery.

Riot police in the Asian financial hub fired pepper pellets on protesters in the main business district, rekindling concerns about the disruptive protests seen past year that hit the territory's economy.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 1.6%, while South Korea rose 1.7%.

The Chinese yuan also weakened to the lowest levels since early September in both onshore and offshore trade.

Yields on USA 10-year notes were trading at 0.67% having recovered from a blip up to 0.74% last week when the market absorbed a tidal wave of new issuance.

Oil prices were supported by falling supplies as OPEC cut production and the number of USA and Canadian rigs dropped to record lows for the third week running.

Spot gold dropped 0.6% an ounce.

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