Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold goes down, as greenback stands still after Fed meeting
On Thursday, gold headed south after the evergreen buck stabilized after the Fed completed its two-day policy gathering and came up with a positive assessment on the American economy.
December delivery gold futures went down by 0.06% trading at $1,227.00 a troy ounce.
The main US financial institution left its interest rates on hold after its two-day policy gathering, as widely anticipated. Then, the major bank updated its view on the US economy.
The Fed told that it actually expects that further gradual rate lifts in the target band for the federal funds rate are going to be consistent with steady expansion of economic activity, firm labor market conditions as well as inflation near the bank’s 2% goal.
Evaluating the purchasing power of the US currency against a bunch of its crucial counterparts, the USD index managed to jump by 0.11% trading at 94.56.
The key US bank delivered quite hawkish comments in the statement giving an emphasis to the very strength of the American economy, as a group of financial analysts pointed out on Thursday.
Financial experts added that there was nothing surprising in the previous night's Fed remark, although the overall tone turned out to be a bit stronger than the previous one.
At the same time, on Thursday Asian markets managed to extend losses. As a matter of fact, China’s stock markets headed south over 3% in the face of renewed trade war worries.
Higher American duties on China’s imports currently look increasingly likely right after Robert Lighthizer, US Trade Representative officially confirmed that American leader is geared up towards slapping a higher 25% duty on $200 billion worth of China’s products due to the fact this Asian country refused to meet American demands. US President told that the United States could slap duties on all American imports from this leading Asian country.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…