Find out the main drivers for this week
Gold stands still
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 tightening.
On the Comex exchange February delivery gold futures surged no more than 0.05% ending up with an outcome of $1,292.70 a troy ounce.
As a rule, higher interest rates put pressure on demand for the yellow metal that doesn’t bear interest.
By the way, Powell’s last appearance backed equities because the statesman emphasized that the major US bank could be patient enough on further policy tightening. A great number of traders are assured that the Federal Reserve is going to pause its rate lifts for this year. They also give a 14% likelihood that it will actually have interest rates cut by the end of 2019.
On Wednesday, presidents of four of the 12 Fed regional financial institutions told that they would like to see greater clarity on the state of the American economy before extending the Fed’s rate lift campaign any further, dropping a hint that the major US bank could take months before another lift is carried out.
St. Louis Fed President James Bullard, who has a reputation of the most dovish policymaker, came up with a suggestion that further tightening could potentially tip the American economy into recession.
Market experts told that the yellow metal is actually getting a bit support out of a dovish Fed stance as well as institutional instability in America.
As for other metals, silver futures tumbled by 0.19% ending up with $15.705 a troy ounce. Moreover, palladium futures ascended by 0.39% trading at $1,274.30 an ounce. Platinum futures tacked on by 0.24% being worth $827.30.
Copper tumbled by 0.72% trading at $2.638 a pound.
The price for WTI has risen to its highest levels since the beginning of May.
On Wednesday, the yellow metal managed to extend gains for the fourth consecutive day, while other metals are going down…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.