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.
Gold rallies on diving greenback after the Fed meeting
On Thursday, gold managed to ascend in the face of a moderate decline in the evergreen buck. However, the surge in prices for the number one precious metal is limited before Friday's report on employment in America that can provide a new impetus to the evergreen buck.
June delivery gold futures rallied 0.34% on the Comex exchange coming up with an outcome of $1310.20 a troy ounce.
On Tuesday, prices for the most popular precious commodity went down to about $1,302.40, which turned out to be the lowest outcome since March 1.
On Thursday, the major American currency slumped from the maximum for four months versus a pack of other currencies. Besides this, the greenback retained support after the Fed indicated that it will keep gradually lifting the interest rate, including its upcoming June gathering.
The US dollar index, evaluating the purchasing power of the US currency versus its six major rivals, headed south by 0.15% ending up with 92.45. Evidently, the depreciation of the US currency makes gold more affordable for those who keep other currencies
In its statement on the outcomes of the two-day gathering, the Committee on Open Markets of the Federal Reserve acknowledged the surge of inflation, proceeding with the way to a second interest rate lift in 2018 as a result of its June gathering.
The forecast for a faster leap in the interest rate leads to a dive in the price of gold, traditionally traded in American dollars. When the cost of borrowed funds is going up, it’s hard for the number one precious metal to go on a part with high-yield assets.
Furthermore, silver futures gained 0.61% on the Comex exchange hitting $16.47 per troy ounce, while platinum tacked on by 0.75% being worth $900.50.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.
In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.