For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Yellow metal declines beneath $1,300
On Thursday, the yellow metal has been done in by the key US bank, as anticipated.
March meeting minutes from the Fed suggesting the US major financial institution hasn’t completely excluded lifting interest rates in 2019 sent the yellow metal and futures down beneath the major $1,300 mark on Thursday. The given level appears to be crucial to the confidence of those who hold long positions on gold.
As a matter of fact, spot gold decreased by 1.3% ending up with $1,291.41 an ounce.
June delivery gold futures slumped by 1.6% on the Comex exchange hitting $1,293.30 per ounce.
On Wednesday, spot gold reached a two-week maximum of $1,310.65, ahead of the publication of the Fed minutes, when the market rumored the possibility of the major bank decreasing rates to soothe President Donald Trump, who has already complained that American surge is slower now due to the four Fed lifts last year.
To be fair to the Federal Reserve, the vast majority of members at its March gathering told that they preferred keeping rates intact through this year. It left little room for the possibility of a rate lift that would be bearish for the yellow metal.
On Wednesday, ECB Governor Mario Draghi lifted the likelihood of more support for the struggling eurozone economy if its deceleration persisted, keeping its ultra-easy monetary policy intact.
As for palladium, it decreased for a second-straight day, although managed to hold the reputation of the world's most expensive traded metal.
Eventually, spot palladium decreased by 2.1% reaching $1,361.15 an ounce.
Additionally, silver futures decreased by 2.2% showing $14.90 per ounce.
Copper futures slumped by 1.3% being worth $2.89 per pound.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.