“The two big headwinds we are looking at is weakening data out of the eurozone and some uncertainty around the trade dispute with China creeping back into the markets,” Shawn Cruz, manager of trader strategy at TD Ameritrade, told Reuters.
Meanwhile, a more dovish stance on monetary policy out of the European Central Bank and Federal Reserve also helped bolster the gold outlook since further rate hikes would diminish the appeal of a non-yielding hard asset like precious metals.
“The fact that we are seeing major central banks turn dovish at the same time is probably alarming for some investors, which may explain why stocks have failed to sustain their rally. But this is good news for bonds and therefore noninterest-bearing and low-yielding assets such as gold and silver,” said Fawad Razaqzada, market analyst at Forex.com, in a note.
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