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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.
The market sentiment improved after the USA reported some decreasing in coronavirus hospitalizations. Gold dropped below $2 000 and the US dollar dipped down, while stocks surged. Let’s have a closer look.
The RBNZ will make the monetary policy statement on August 12 at 5:00 MT time!
The market has started the week with a mixed sentiment…