Gold heads south in Asia ahead of Fed minutes

Gold heads south in Asia ahead of Fed minutes

On Wednesday, gold slumped because market participants geared for Fed gathering later in the day for more fresh clues on the rate path next year.

December delivery gold futures dived 0.14% in New York being worth 1,279.89 a troy ounce.

Overnight, gold rallied after the US currency went down amid weakness in long-term US yields ahead of the publication of the Fed’s October gathering minutes slated for Wednesday.

Long-term treasury yields were still suppressed, thus putting pressure on the evergreen buck, while spurring demand for gold because market participants waited for the minutes of the Fed October gathering for fresh clues on future monetary policy action.

The overall prospect of a December rate lift happens to be fully priced in, as investing.com’s fed rate monitor tool states.

Traditionally, the number one precious metal is very sensitive to moves lower in the greenback. It’s because a weaker US currency makes gold more affordable for holders of foreign currency.

 

Similar

Popular

Asian shares tumble with Japan markets shut

On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…

Greenback surges as yields soar

On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

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