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Gold heads south moderately in Asia as traders geared for Jackson Hole speeches
On Friday, gold slumped moderately in Asia, with financial markets braced for reacting to any signs on monetary policy from the Fed as well as ECB bank chiefs later in the day.
In New York, December delivery gold futures went down 0.01% reaching $1,291.94 a troy ounce.
Overnight, the major precious commodity stood still amid thin trading volumes. It’s because market participants waited for signs on monetary policy from a key banking symposium in Jackson Hall that burst out on Thursday.
Gold fluctuated in rather a narrow $6 range because market participants kept their powder dry ahead of decisive speeches by ECB Governor Mario Draghi as well as Fed Chair Janet Yellen.
Draghi isn’t supposed to provide much insight into the ECB’s view on monetary policy. However, market participants are supposed to parse Yellen’s statement to assess the Fed’s sentiment on a third rate lift later in 2017.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.