Britain’s economic and political issues along with a no-confidence vote on Prime Minister Theresa May following her unsuccessful Brexit deal vote gave gold traders a hope of getting back to maximums of above $1,300 an ounce…
Gold reaches 6-month maximum as weaker greenback gives support
On Thursday, the yellow metal managed to surge, hitting a 6-month maximum due to the fact that a less-hawkish main US bank led to a weaker evergreen buck, thus underpinning the US dollar-denominated precious commodity.
On the Comex exchange, February delivery gold futures managed to jump by approximately 0.41% ending up with $1,261.50 per troy ounce. By the way, its intraday maximum of $1,265.65 turned out to be its highest value since June 26.
Besides this, the USD index, traditionally utilized to gauge the purchasing potential of the major American currency versus its main rivals, slipped by about 0.34% ending up with 96.15.
Although the Fed had rates lifted as anticipated on Wednesday, but policymakers tamed their expectations for lifts in 2019 narrowing them to just two versus the earlier three estimated in the September forecasts.
In general, financial markets are still downbeat, with odds sticking with 50% for just one rate lift at the end of 2018.
In addition to this, skittishness in equities also gave some support to the safe-haven precious metal because traders had assets reallocated.
A number of financial analysts pointed to the fact that the price $1,300 for gold wasn’t unreal, but just trickier.
It feels like the path to $1,300 is still alive for the yellow metal. However, the most popular precious commodity will have to count on the stock market getting affected by worries of extra rate lifts as well as the evergreen buck still lifeless.
As for other metals, silver futures declined by about 0.17% ending up with a reading of $14.793 a troy ounce by 11:25 AM ET.
As for palladium futures, they declined by 0.66% trading at $1,193.40 an ounce. Besides this, platinum futures dipped by 0.59% hitting $791.30.
Copper futures dived by 1.22% trading at $2.683 a pound.
On Tuesday, gold managed to gain a bit due to the fact that the first dive in factory gate inflation for four months backed the argument that the major US bank should suspend monetary policy tightening and traders looked ahead to a bunch of remarks from…
On Thursday, gold was intact due to the fact that market participants waited for comments from Fed Chair Jerome Powell in the face of hopes that the head of the US key financial institution is going to reaffirm a pause in the US monetary policy…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…