The US tire tariffs against China sparked fears of retaliation and boosted the greenback in early trading yesterday on safe heaven buying. In reaction gold which is usually inverse correlated to the US currency has started to head south. However, later on the dollar turned around and continued to weaken against the euro making fresh lows but gold remained on the back foot once it's broken below the $1000.00 level. Silver followed gold lower losing 20 cents to settle at $16.540/oz. Both precious metals appear to be in a consolidation mood but with the greenback on the defence the outlook is likely to stay positive.

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Gold & Silver

METAL

LEVEL

CHANGE

GOLD

999.40

(-5.45)

SILVER

16.540

(-0.20)

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