Gold futures slip. However, they hold close to multi-week highs after rallying during Monday’s session.
Futures are down 0.7% at $3,372.30 a troy ounce. They reached as high as $3,417.80/oz in the prior session. The precious metal’s Monday jump was driven by investors putting money into safe-haven assets amid renewed trade war jitters, Trade Nation’s David Morrison says.
This follows President Trump’s accusation that China violated terms of a temporary trade agreement. Beijing denied this charge. The U.S. dollar fell sharply in response as investors rushed to find sanctuary in gold, the Swiss franc and Japanese yen, Morrison says.
Investors might consider waiting to see how gold settles following Monday’s rally, he adds.