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Gold declines after worst one-day tumble for six weeks
On Wednesday, gold kept diving, extending losses into a third session. It’s because market participants looked ahead to minutes of the Fed’s latest policy gathering for further clues on the timing of the next American rate lift as well as clues on how the major financial institution intends to pare back its balance sheet.
The Fed’s going to publish minutes of its most recent policy gathering later in the day.
The key bank left interest rates intact following its gathering on July 26 and told it actually expected to start shrinking its huge holdings of bonds in the nearer future. Policymakers also told that weakness in American inflation more explicit than before.
Aside from that, market participants will monitor data on American housing starts as well as building permits in order to assess the overall strength of the world's number one economy and how it will influence the Fed's view on monetary policy.
In New York, gold futures slumped 0.3%, being worth $1,275.81 a troy.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.