Gold and other metals are trading in consolidation mode on Thursday as investors are waiting for the US employment report on Friday to see how the US economy is doing and how much sure they can be about a rate cut by the Fed.
Besides, investors are digesting the latest US President Donald Trump tweet complaining about a supposed euro price manipulation by the European Union.
Dollar index is trading sideways between 96.60 and 96.80 as it has been doing in the last three days.
Remember that the Units States is on holiday today due to the Fourth of July.
Another Tweet in Trump land
US President Donald Trump complained in a tweet against China and Europe for what he considers it is currency manipulation and money pumping into the economy so they can compete with the United States.
“China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA,” the president wrote. “We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!”
Interestingly, the president has that point of view as he is, at the same time, blaming Federal Reserve official because they are not taking similar measures like rate cut or expansionary policies to fuel the US economy.
In the same page, Westpac Bank analyst Sean Callow believe that Trump is wrong about his considerations.
“I don’t know why he’s complaining about China right now,” Callow said to CNBC. “Certainly for anyone who actually follows the Chinese currency, it’s clear that China has not been trying to weaken its currency for the past couple of years.”
The tweet raised concerns about possible tariffs from the US to European goods soon.
Metals report for July 4, 2019
XAU/USD is trading in consolidation mode on Thursday following the decline performed on Wednesday. Yesterday, gold jumped to test the 1,440 area, but the pair got a rejection at that level that sent the unit to the 1,410.
On Thursday, gold extended declines until it found support at the mentioned 1,410. It is now trading 0.26% negative at 1,415.
Silver is trading negative on Thursday, though it recovered from more profound losses earlier on the day. XAG/USD is currently trading at 15.30, 0.10% down on the day.
Previously, silver bounced back from 15.05 on Tuesday, and the unit extended gains to test the 15.50 area on Wednesday; however, silver wasn’t able to sustain, and it returned to close a slightly negative Doji candle at 15.30.
Copper is trading down again on Thursday after the recovery performed on Wednesday. It is currently at 2.6550, 0.27% negative on the day.
Previously, copper posted three consecutive negative sessions from June 28 to July 2. On Wednesday, it found support at 2.6300 with the unit bouncing back to 2.6820 where it is moving right now.
Palladium is trading down on Thursday as the unit is consolidating levels above the 1,560 area. XPD/USD is performing its first negative day in the last four as the pair advanced from 1,540 to trade at 1,576, its highest level since March 26.
Currently, palladium is trading 0.68% down on the day at 1,565. The 1,570 is acting as an important resistance level with the 1,520 being the short term support for now.
Platinum is moving in consolidation mode around 840.00 following the previous metal rally from 825.00 to 843.00 performed between Tuesday and Wednesday. XPT/USD is now trading at 873.40, 0.20% negative on the day.
This article was originally posted on FX Empire
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