Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold heads north, concluding at $1,300
On Monday, the yellow metal surged, concluding at the psychologically crucial $1,300 level due to the fact that the evergreen buck was impacted by hopes that the key US financial institution would stop its rate-lifting cycle for the year, thus raising demand for the number one precious commodity from holders of other currencies.
On Friday, Fed Chair Jerome Powell told that the main US financial institution would be more sensitive to downside risks in the financial markets. The statesman added that the major bank is ready to change its stance.
Prices of gold are prone to ascend when rate lift expectations relieve because lower interest rates diminish the opportunity cost of holding non-yielding bullion.
February delivery gold futures headed north by 0.59% on the Comex exchange being worth $1,293.40 having ascended to as $1,296.50 previously.
The evergreen buck tumbled on soaring bets the Federal Reserve would suspend its rate lift cycle in the near months following Friday's remarks from Fed Chair Jerome Powell.
Estimating the greenback’s purchasing potential in contrast with a number of its main rivals the USD index slumped by 0.43% ending up with 95.33, which is the weakest value since October 22.
Buyers are currently getting back to the gold market on dives, as some experts pointed out.
For the yellow metal the major trend still appears to be bullish. Market participants are currently considering the two key levels of $1,277 as well as $1,300 to be fresh support and resistance levels.
Palladium, utilized mostly in emissions-reducing auto catalysts for cars managed to ascend by nearly 0.3% being worth $1,238.15.
As for other precious commodities, silver was nearly intact showing $15.79 an ounce. Meanwhile, platinum headed north by 0.33% being worth $830, having hit a more than one-month maximum of $831.10 previously in the session.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
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The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.