Sudden spikes? Yes, please! Gold is above $1,800, finally!
Gold stands still having dived the most for two weeks
On Friday, the yellow metal was nearly intact in Asia because investors were still cautious after the Fed’s decision to keep interest rates on hold.
On the Comex exchange, June delivery gold futures were intact, sticking with $1,272.85 per ounce.
Gold recorded its greatest one-day percentage tumble for over two weeks on Thursday because the major US bank hit hopes of a near-term rate cut, which would have backed non-interest bearing bullion.
The Federal Open Market Committee kept the benchmark interest rate intact, which is in line with the market's hopes.
However, what sent the yellow metal down was the major financial institution’s emphasis that it didn’t see any true reason to consider a rate cut in the nearer future, referring to soaring employment as well as economic surge.
Fed Chair told that the key bank doesn’t find its policy stance appropriate at the moment and there’s no strong case for moving in any direction.
However, traders shifted their focus to April's American jobs report as well as the non-farm payroll data, expected to be uncovered a bit later in the day.
Besides this, a report by the World Gold Council gained some attention. Well, it told that first-quarter gold buying by key financial institutions, led by China and Russia, turned out to be the highest for the last six years.
Some experts noted a continuation of the firm demand from major banks and added that major bank buying appeared to be a major support for gold.
Experts stressed that they hope for another good year for major bank buying.
Read a short market wrap before trading today!
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!