Top 7 Reasons why Gold soared and break above its 6-year highs
* The uncertainty regarding the U.S-China trade war.
* Trump tweet about the possibility of imposing 5% of tariffs on Mexico.
*The 10-year-3months yield curve inversion.
*Speculation by the commentators saying the Fed is going to cut rates next month.
*Attacks on two oil tankers in the Gulf of Oman.
*Iran and America growing Tense Relationship.
*Weakness in the U.S stock indexes and in DXY .
All the mentioned causes blended together proved to be negative for the U.S equity market hence the safe heaven buying became obvious as traders and investors risk appetite dropped significantly.
*US manufacturing activity last month fell to its lowest level in nearly three years.
*JPMorgan’s Global Manufacturing PMI just plunged to the lowest level.
*The U.S. economy has officially entered the longest expansion in its history.
*Gold-Silver ratio is currently trading at its 30 year high which stands at 93.
*The disaggregated report shows that money managers reduced their net long to 182,611 contracts from 194,087 the week before.
*“The reduction in speculative net-long positions in silver was more pronounced (nearly 30%),”. “Accordingly, the silver price fell all the more steeply, pushing the gold/silver ratio up to over 93.”
* Markets will be focussed on Chinese gross domestic product data due at 0200 GMT , where analysts expect second-quarter growth to have slowed to 6.2% from a year earlier - the weakest annual pace since early 1992.
* A disappointing number would add to worries about slowing global growth and reinforce the case for more stimulus by Chinese authorities as a damaging trade war with the United States rages on.
* Alongside GDP, China will also publish activity data for June including retail sales, industrial production, and urban investment, which could give more clues on whether earlier support measures are starting to kick in, or if more policy easing is needed.
* Meanwhile, the dollar index was relatively unchanged against a basket of major currencies.
* The dollar index fell for three days in a row on prospects of an interest rate cut by the U.S. later this month.
* Hedge funds and money managers cut their stance in COMEX gold in the week to July 9, the U.S. Commodity Trading Commission (CFTC) said in a report on Friday.
* Physical gold buying stalled in top Asian hubs last week as consumers sold back bullion to cash in on a steep price rally, while a recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates.
* Belo Sun Mining Corp said on Friday it had won a legal victory in its push to mine the country’s largest undeveloped gold deposit in the Amazon rainforest, which has drawn criticism from environmentalists and indigenous advocates.