Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
Gold jumps in Asia ahead of Fed policy views
On Wednesday, gold leapt during Asia trade, with the Fed policy review believed to follow a well-telegraphed script on interest rates and cutting the balance sheet, although some traders are searching for language suggesting a shift to a more dovish outlook.
December delivery gold futures rallied 0.44% being worth $1,316.41 a troy ounce.
Overnight, the leading precious commodity was intact because Donald Trump’s claimed that America would dare to totally destroy North Korea in an attempt to defend itself as well as its allies and those words did little to underpin safe-haven demand as market participants focused on the two-day Fed gathering concluding on Wednesday.
Trump’s recent threat to North Korea didn’t manage to garner much attention because investor focus was still on the two-day Fed gathering, which is expected to conclude on Wednesday with a highly anticipated statement on monetary policy.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.