Gold goes down

Gold goes down

On Wednesday, gold sank after a two-day rally because a strengthening greenback took some of the bullish support from the yellow commodity because the Fed uncovered details from its latest policy gathering.

However, market experts told that they didn’t see any major hurdles in the precious metal’s path towards another objective of $1,250 an ounce.

Gauging the US dollar’s purchasing potential versus its primary opponents the USD index managed to surge by about 0.5%, which is its greatest surge for three weeks.

Having edged down from a 2018 maximum of $1,343.80 in February, the yellow metal got back to $1,200 in August.

The price of the yellow metal hasn’t rebounded, but tested another support level at $1210. Financial analysts find it a good thing.

The key US financial institution reaffirmed its strong commitment to steady rate lifts, stressing that gradual rally in the target band for the federal funds rate would be in line with a sustained expansion of economic activity.

American gold futures' most-actively-traded contract, with December delivery managed to conclude down $3.60 on the Comex exchange being worth $1,227.40. On Monday, it reached a two-and-a-half-month maximum of $1,236.90.

Eventually a surfeit of geopolitical clashes have backed the yellow metal for the last three weeks, including Saudi Arabia's meltdown over the disappearance of an allegedly killed reporter, China's trade conflict with America as well as Italy's budget issues, which could impact the eurozone.

American bond gains have also reached multiyear maximums, thus restraining the evergreen buck from soaring further, to the yellow metal’s advantage, notwithstanding Fed’s hawkish stance.

The number one precious commodity was also gaining firm support from speculators trying to push it to $1,250 or even beyond ahead of the highly anticipated expiration of options on October 25, as some financial analysts pointed out.

 

Similar

Something more Important than NFP
Something more Important than NFP

For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.    

Latest news

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

USD Gains Momentum
USD Gains Momentum

The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera