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 goes down on strengthening greenback
On Tuesday, gold headed south to a year minimum, suppressed by a soar in the US dollar because Fed Chair Jay Powell told that gradual rate lifts would continue.
August delivery gold futures headed south by 0.94% on the Comex exchange being worth $1,228.00 a troy ounce, having soared to $1,245.10 earlier.
On Tuesday, in his annual testimony to Congress Tuesday, Fed Chair told that for the US key financial institution the best strategy would be to proceed with lifting interest rates due to the fact that the American job market has managed to strengthen and inflation has successfully met the Fed's 2% objective.
It undoubtedly reaffirmed investor expectations that the US major bank is going to have interest rates lifted twice more in 2018, helping market participants to pile into the evergreen buck, diminishing demand for the number one precious commodity.
Estimating the greenback’s value versus a group of six main currencies, the USD index tacked on by 0.45%, ending up with a reading of 94.69.
Gold has always reacted to any changes in the value of in both American bond revenues as well as the evergreen buck. A soaring greenback makes gold less affordable for those investors who hold foreign currency. On the contrary, a leap in American rates raises the opportunity cost of keeping gold because it pays no interest.
In addition to this, a stronger evergreen buck also demonstrated that other metals bounced off steeply as aluminum gave up revenues to stick with session minimums, platinum futures sank to a two-week minimum.
Besides this, copper went down by 0.56% being worth $2.75, zinc rallied by 0.96% reaching 2,507.50.
Aluminium slumped by 1.25% trading at 2,033.00, Nickel futures went down 0.868% showing 13,545.00.
As for silver futures, they slumped by 1.25% reaching $15.61 a troy ounce. Platinum futures dipped by 0.57% trading at $821.70.
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…