On Wednesday, gold managed to leap reaching the best levels of the trading session because data disclosed that American consumer price surge speeded down in November…
Gold edges down ahead of Fed decision
On Wednesday, gold went down in Asia trade ahead of the Federal Reserve decision on the interest rate. Market participants are waiting for clues about the tempo of further tightening of the US monetary policy in 2018.
Gold futures went down by 0.08% on the Comex exchange demonstrating a reading of $1298.30 an ounce.
Traders are currently focused on a two-day gathering of the Federal Committee for Open Market Operations to be concluded on Wednesday.
Many traders hope that the main US financial institution will have interest rates increased for the second time in 2018, and financial markets are awaiting clues that will make it clear whether the Fed is going to lift the interest rate 3 or 4 times this year.
Meanwhile, the evergreen buck proceeded with the upward movement that started on Thursday. Reflecting the actual strength of the greenback versus a bunch of key currencies, the US dollar index headed north by 0.06% coming up a reading of 93.
Yesterday, demand for the number one precious metal edged down, and market participants shifted to the evergreen buck as well as more risky assets after the upbeat outcome of the long-awaited meeting between American President Donald Trump and North Korean dictator Kim Jong-no. They both signed an important document telling that American president is obliged to provide security guarantees for North Korea in exchange for 100% denuclearization of the Korean peninsula.
By the way, assets, whose actual value is denominated in US dollars, turn out to be sensitive to the dynamics of ups and downs of the greenback. Strengthening of the US currency makes gold less affordable for those investors who hold foreign currency and, it also diminishes the demand for this non-ferrous commodity.
Silver futures went down by 0.2% being worth $16.855 an ounce.
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…