Observing news today one can easily get disappointed. However, things are getting better.
Gold jumps a bit, as greenback gains little traction ahead of Fed verdict
On Tuesday, gold rallied a bit because the evergreen buck slumped ahead of what’s widely anticipated to be the Fed’s third interest-rate lift of 2018 this week.
December delivery gold futures GCZ8 tacked on by 0.1% being worth $1,205.80 an ounce, going up as the USD index showed 94.08, decreasing 0.2%.
Gold prices built around the most-active contracts have slumped by 8% this year, while the USD index has gained 2.2%. That’s a divergence powered mostly by the Fed tightening American monetary policy more aggressively compared to other developed Western countries.
Higher interest rates normally underpin the US currency and diminish demand for non-yielding bullion.
On Tuesday, gold rallied a bit even as the 10-year Treasury yield came up to seven-year maximums - a move, which might be anticipated to reduce demand for gold.
Fed policy makers are going to have a two-day gathering until Wednesday and market participants are actually pricing in over a 90% likelihood of a quarter-point rate lift. The key American financial institution has projected up to four rate lifts in 2018, so most probably another rate lift will occur in December.
In addition to this, December delivery silver futures SIZ8 struggled to gain traction, losing 0.04% being worth $14.335 an ounce.
As for the exchange-traded funds, the SPDR Gold Trust GLD futures added 0.2%. The iShares Silver Trust SLV futures inched up by 0.3%. Besides this, the VanEck Vectors Gold Miners ETF GDX inched up by 0.6%.
Aside from that, palladium went down, pulling back a bit from its maximum since February when it was underpinned by long- and short-term hopes for stronger global demand.
December delivery palladium futures PAZ8 lost 0.02% showing $1,051.40 an ounce.
December delivery copper futures HGZ8 lost 0.5% being worth $2.823 a pound.
XAU/USD reversed down from the $1,700 area and dropped to $1,586 on March 12.
Oil market crashed after OPEC+ didn’t agree on production cuts. What’s next? Let’s see what bank analysts have to say about this.
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
Jerome Powell made a rare appearance in the public media this Thursday. What did he bring to the audience?