Gold slumps due to the continued appreciation of the dollar

Gold slumps due to the continued appreciation of the dollar

On Tuesday, gold dived in the face of the continued ascend of the evergreen buck.

June delivery gold futures gained 0.14% on the Comex exchange hitting $1312.20 per troy ounce.

The previous week, gold dived to a minimum of two months and reported a third consecutive diving week.

The US dollar index, normally estimating the purchasing power of the US currency against the group of six leading currencies, tacked on 0.3% showing 92.89, which turns out to be the highest result this year.

The appreciation of the major American currency generates a decline in demand for gold as well as other commodities traded in the US currency, thus making them less accessible to those who hold other currencies.

In recent weeks, the growing revenue of American government bonds along with upbeat economic reports has bolstered forecasts of a steady rate of the key US bank’s interest rate hike this year.

At the moment, the US major financial institution predicts two more interest rate lifts in 2018, although some traders expect that there will be up to three more such lifts.

In its statement on the outcomes of the two-day gathering, the previous week the Federal Open Market Committee of the Fed recognized the surge of inflation, proceeding with the way to a second interest rate lift in 2018 as a result of its June gathering.

Market participants keep monitoring the development of the geopolitical situation before today the American President Donald Trump is going to talk about the future of a nuclear deal with Iran, which he repeatedly threatened to break.

As for other metals, silver futures inched down to $16.48 per troy ounce on the Comex exchange, while platinum futures sank 0.35% being worth $910.10.

Copper futures dived 1.17% being worth $3,044 per pound.


Gold declines on Fed remarks

On Wednesday, gold headed south and kept to a one-year minimum due to the fact the evergreen buck managed to strengthen on Fed Chair’s remarks, which backed views that the US major financial institution considers lifting its interest rates this year…


Asian shares tumble with Japan markets shut

On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…

Greenback surges as yields soar

On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

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