This morning, gold prices dropped after the global stock markets started to recover; thus making Gold Futures for December delivery fell by 0.5% to reach $1,512.50 on the Comex division of the New York Mercantile Exchange.
Today, China’s central bank set the Yuan’s daily reference rate at 7.0039 per dollar. Consequently, that led to a gain in global stocks.
Contrary to global stocks, Gold prices dropped despite being supported by the on-going war between the US and China.
The US President imposed an additional tariff of 10% on Chinese goods. As retaliation, the People’s Bank of China devalued the Yuan; thus turning investors towards the Gold market.
The Yuan Rises
In the Asian market, this morning, the Yuan gained against the US dollar.
At 04:15 GMT, the USD/CNY pair dropped by 0.2% to 7.0423 as the Chinese Yuan crossed the key 7 barriers against the US dollar earlier this week.
Moreover, according to statistics, China’s exports for July rose from the previous year and imports decreased by more than expected.
Meanwhile, the U.S. dollar index remained at 97.368 as Trump seeks for more cut rates by the Federal Reserve.
Furthermore, the Reserve Bank of New Zealand’s unexpected decision to cut rates contributed to making the NZD/USD pair gained 0.2% to 0.6457.
Similarly, the AUD/USD pair also rose by 0.3% to 0.6774 while the USD/JPY pair remained unchanged at 106.20.
Early this morning, the prices of major cryptocurrencies were mixed.
At 03:10 GMT, bitcoin rose by 3.1% to $12,010.2 as it pushed its market cap to $210B.
In the last seven days, bitcoin gained about 20%; thus turning it into a safe-haven asset as the global stock markets plunged due to the on-going US-China trade dispute.
However, there are also analysts who believe that Bitcoin is too volatile to make such statements.
Elsewhere, Ethereum fell by 0.7% to $224.84 just like XRP dropped by 0.4% to $0.31144.
Similarly, Litecoin also lost by 1.8% to $91.431.