Gold rallies more than 1%

Gold rallies more than 1%

On Thursday, gold jumped over 1%, thus getting back to the psychologically crucial mark of $1,200 because a rout in global stock markets underpinned worries over soaring bond gains, speeding down global growth, not to mention trade clashes.

December delivery gold futures jumped by 1.16% on the Comex exchange being worth $1,207.30. On Wednesday, the yellow metal had concluded at $1,189.30.

Safe haven demand for gold was underpinned against the backdrop of abrupt dives in global stock markets because market participants dumped risky assets.

Evidently, the selloff was provoked by a combination of fears over the impact of soaring bond gains as well as fears that trade clashes are starting affecting the global economy.

American equities pointed to a steeply lower start, just a day after the greatest dive on Wall Street for more than eight months.

The dives took place notwithstanding a soar in American Treasuries. The revenue on the benchmark 10-year note, moving in the opposite direction to price, headed north because market participants required safety from the global equities sell-off.

The previous week Treasury gains started soaring in the face of hopes for a faster than anticipated pace of rate lifts from the Fed because the US economy seems to be firm enough.

Gold got an extra boost from a soaring greenback, with the USD index, diving 0.39% to a one-and-a-half week dip of 94.86.

A slipping greenback is capable of making dollar-denominated assets, including the yellow metal, more affordable to purchasers who hold other currencies.

Hopes for soaring interest rates will most probably remain a headwind for the yellow metal. Interest rate hikes as well as higher American bond gains dampen appeal for the most popular precious commodity that doesn’t offer yields.

December delivery silver futures rallied by 0.59% hitting $14.41 a troy ounce.

 

 

 

Similar

Something more Important than NFP
Something more Important than NFP

For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.    

Latest news

FED and BOE Make Another Attempt to Beat Inflation
FED and BOE Make Another Attempt to Beat Inflation

The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

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