The shining metal breaks above $1,760. How soon the 2012 heights may be beaten?
Metals are mixed notwithstanding sliding greenback
On Monday, metal prices demonstrated mixed performance because gold stood still notwithstanding a sliding evergreen buck ahead of the Fed’s monetary policy decision to be uncovered later this week.
August delivery gold futures inched down by 0.07% on the Comex exchange hitting $1,222.10 a troy ounce, although staying below an intraday maximum of $1,218.10.
The number one precious metal traded in rather a tight range. The commodity struggled to take advantage of a declining US currency ahead of the Fed’s highly anticipated monetary verdict.
Estimating the evergreen buck’s purchasing power versus its main rival, the USD index headed south by approximately 0.40% coming up with an outcome of 94.07.
Wednesday's Fed gathering is expected to be a non-event due to the fact the key bank isn’t anticipated to have rates lifted or make tweaks to the balance sheet normalization schedule soon.
Up to 96.9% of investors expect the major US bank to leave its rates on hold.
For the last three months gold has lost approximately 8% and it also lost 11% from 2018 maximum because market sentiment on this precious commodity has weakened. Market experts kept ramping up their bearish bets on the most popular precious metal.
According to CFTC COT data, money managers cut their net long positions in gold futures from 57,800 lots to approximately 48,600 lots by July 27.
However, the wider metal markets capitalized on the weaker greenback because aluminum as well as prices went up abruptly.
Copper prices headed south by 0.18% hitting $2.80. At the same time, zinc edged down by 1.23% being worth 2,557.25.
As for aluminum prices, they managed to leap by nearly 1.14% hitting 2,084.50. Additionally, nickel futures rallied by 0.82% trading at 13,895.00.
Besides this, silver futures tacked on by 0.24% coming up with an outcome of $15.53 a troy ounce, and platinum futures dived by 0.01% demonstrating $831.60.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.