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Gold goes down notwithstanding weakening greenback
On Thursday, gold declined notwithstanding a weakening evergreen buck in the face of ebbing trade fears, as market participants waited for economic data later in the trading session and also looked ahead to the Fed’s policy gathering next week.
December delivery gold futures lost 0.06% on the Comex exchange being worth $1,207.60 a troy ounce.
From April’s maximum the most popular precious commodity has slumped due to the fact that a worsening US-China trade conflict as well as soaring American interest rates were referred as catalysts for the selling in the yellow metal.
Reports of the levies slapped by China and America on each other's products set at lower levels than anticipated were referred as a headwind for the evergreen buck considered to be a safe-haven asset.
The evergreen buck was also pressured after a report told that Canada and America won’t probably come to a compromise on NAFTA this week.
On Thursday, weekly jobless claims, economic calendar as well as the Philadelphia Fed manufacturing index for September are going to be uncovered. Apart from that, investors are waiting for August existing home sales.
Market participants looked ahead to the next Fed’s policy verdict to be uncovered on September 26.
Financial markets currently expect the key US bank to have rates lifted by a quarter of a point. At the same time, Fed fund futures price in an extra lift at the end of 2018 at more than an 80% likelihood.
Ascending American interest rates were also referred as headwind for the yellow commodity.
As for other metals, silver futures headed south by 0.04% being worth $14.275 a troy ounce.
Besides this, palladium futures rallied by 0.22% reaching $1,033.10 an ounce. At the same time, silver futures gained 0.10% hitting $822.70.
Copper lost 0.49% being worth $2.716 a pound.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.