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On Wednesday, gold was braced for back-to-back dips because a leading USD index managed to ascend from a one-month minimum.
December delivery gold futures GCZ8 headed south by 0.4% trading at $1,209.70 an ounce. So far this week, the most popular precious commodity has slumped by 0.3%.
The ICE USD index DXY rallied by 0.2% hitting 94.912, decreasing by 0.3%. Nevertheless, for August the index has jumped by 0.4%. For the year it has managed to leap by 3%.
Gold often rises when the evergreen buck dives, and vice versa due to the fact the yellow precious metal is often traded in the US dollar. The evergreen buck has been the key driver for gold action this year, with gold losing 9% in 2018 through August.
The bull pressure on gold has been temporary. Perhaps, one of the reasons of gold’s recent dive is that the American economy is standing on firm ground and US customers are feeling quite confident about it, and it follows from yesterday’s economic reports, as some financial analysts pointed out.
The key US bank is anticipated to have its benchmark interest rate lifted in September and then in December. In addition to this, the Fed consider extra mild rate tightening next year, although the panel has recently noted bubbling worries for a trade-impacted economic deceleration.
On Wednesday, the popular gold exchange-traded fund SPDR Gold Shares GLD went down by 0.3%. Besides this, the VanEck Vectors Gold Miners ETF GDX slumped by nearly 0.2%.
As for other metals, December delivery silver futures SIU8 declined by 0.8% showing $14.77 an ounce. December delivery high-grade copper futures HGU8 rebounded from Tuesday’s impressive profit, last losing 0.9% hitting $2.734 a pound. Besides this, October delivery platinum futures PLV8 dived by 0.6% trading at $790.80 an ounce, while December delivery palladium futures PAU8 dipped by 0.3% trading at $939.40 an ounce.
Anxiety over the US-China trade conflict and Brexit is keeping the yellow metal’s $1,200 perch alive, notwithstanding the evergreen buck trying to gain leverage against gold on the same fears…
On Monday, gold slipped a bit because the USD index rallied to its highest value for more than 17 months, thus affecting gold’s demand…
On Friday, gold edged down due to the fact that inflation data indicated steady interest rate lifts by the primary US financial institution…
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…
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