Gold goes down, suppressed by strengthening greenback

Gold goes down, suppressed by strengthening greenback

On Wednesday, gold slumped because elevated bond gains kept to their steepest values since 2011 and the USD index stood still sticking with its seven-week maximum.

December delivery gold futures GCZ8 declined by 0.1% hitting $1,190.30 an ounce, revisiting the one-week close of $1,188.60 reached Monday, prior to Tuesday’s moderate rebound. Moreover, December delivery silver futures SIZ8 lost 0.2% trading at $14.375 an ounce.

The USD index was intact sticking with 95.68. This year it has managed to gain 4%, contributing to a 9% sink for the yellow metal for the same period. The gain on the American 10-year Treasury note TMUBMUSD10Y headed north by 1.8 basis points ending up with 3.23%.

The yellow metal is trading steady in a narrow band because the evergreen buck rebounds from its seven-week maximum – support is still firm enough for the evergreen buck on the back of a sound American economy as well as hopes for steady interest-rate lifts by the key US bank, as some financial analysts pointed out.

The key US bank has already lifted interest rates three times this year.  What’s more, the major bank is anticipated to have benchmark rates lifted a fourth time in December. Besides this, the Fed will most likely proceed with its gradual tightening next year, at least it’s follows from the bank’s own projections.

Due to the fact that precious commodities are often employed as a haven by market participants and they don’t provide yields, gold is vulnerable to a dive in a soaring-rate environment. The given climate also tends to back the evergreen buck, thus dimming the appeal of dollar-priced gold to traders who utilize other currencies. However, stock markets appear to be vulnerable to strengthening bond gains and any indication that equity markets are in fast retreat could potentially resume interest in the yellow commodity.



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

No More US Debts in Sight
No More US Debts in Sight

The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.

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.


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