Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
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.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.