Find out the main drivers for this week
Gold inches down as evergreen buck tacks on following Fed minutes
On Thursday, gold sank, suppressed by fresh revenues in the evergreen buck because it traded close to a one-week maximum versus a group of key currencies.
April delivery gold futures dived 0.43% the New York Mercantile Exchange being worth $1,331.60 per troy ounce.
The major American currency managed to extend its revival. What’s more – on Thursday it suddenly headed north to its one-week maximum. It’s because the Federal Reserve’s latest remarks strengthened hopes for interest rate lifts. The major US financial institution mainly referred to rather a positive situation with inflation as well as soaring confidence that economic surge would step up soon. By the way, Fed policy makers are going to meet soon. To be exact, the gathering is scheduled for 20 March.
The Fed minutes had a strong impact on both the evergreen buck and American treasury revenues – they both inched up.
At 10:45pm the US dollar index demonstrated an outcome of 90.01, which is a 0.01% leap, having soared to 90.166 earlier today. It’s because the Fed’s optimistic tone pushed the evergreen buck up this morning to overleap the 90 mark from a three-year minimum of 88.25.
In a soaring interest rate space, investor appetite for a weakening gold as the opportunity cost of keeping the number one precious commodity goes up relative to interest-bearing stuff, including bonds, for example.
On Thursday, Asian shares inched down. The matter is that investors were simply impressed by the American shares’ downbeat reaction to the latest Fed minutes. As a matter of fact Shanghai Composite along with Shenzhen Component turned to be the exceptions due to the fact they got back to the market after a week-long holiday. As a result, they both rallied approximately 2% in mid-morning trade.
The price for WTI has risen to its highest levels since the beginning of May.
On Wednesday, the yellow metal managed to extend gains for the fourth consecutive day, while other metals are going down…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.