Gold intermarket: investors favour Clinton and DXY firms on risk appetite

Gold has ended the U.S. session on a low and the worst performance in over a week as investors seek out yield and sump safe haven assets, driving the prices to $1,324 from $1,339 highs.

There was little to go on other the U.S. presidential debate proving a lead of opinions for Clinton while Trump on the other hand is regarded as a risk and makes a bullish case for Gold and the Yen. However, Kit Juckes, economist at Socgen explained, "The press verdict on the first US Presidential debate is that Hillary Clinton ‘won', but Donald Trump didn't lose badly enough to really reduce the uncertainty. "

Nevertheless, USD/JPY dropped from the highs of 100.98 to test 100.00 while DXY picked up from the depths of 95 and has reached the midway point as demand picks up. The US30YT has fallen to 2.28 from 2.49 recent highs while the VIX has dropped off from the 18 handle down to 13 as markets begin to normalise after strong volatility post the BoJ and FOMC last week. Meanwhile, U.S. stocks have been on a footing which has also drawn funds away from the yellow metal ahead of key U.S. data later in the week in durable goods and US Q2 GDP estimates.