Sudden spikes? Yes, please! Gold is above $1,800, finally!
Yellow metal recovers win streak
On Tuesday, gold futures managed to gain, demonstrating the fourth winning day for the last five trading sessions because the evergreen buck slumped and a degree of uncertainty crept into stock markets, still keeping to record peaks.
The yellow metal surged because stock-index futures indicated a mixed start for Wall Street because traders wait for the kickoff of a two-day Fed gathering because Chinese factory data revealed some softening as well as a flurry of corporate earnings, with less-than-impressive outcomes for Alphabet.
Besides this, gauging the greenback’s purchasing power versus its main rivals, the USD index slumped by about 0.1%.
As a matter of fact, June delivery gold futures managed to surge by up to 0.5% ending up with $1,287.70 an ounce. Additionally, May delivery silver futures went up by about 0.7% trading at $14.95 an ounce. As for July delivery silver futures, they hit $15.005, adding 0.5%.
Policy makers are anticipated to leave interest rates intact after Wednesday’s conclusion of a two-day gathering, although the statement by Fed Chair Jerome Powell are going to be monitored for prompts to the Fed’s future plans, right after the panel suddenly paused its plan for rate lifts in January and ceased the wind-down of its balance sheet.
In addition to this, the employment cost index for the first quarter will be uncovered at 8:30 a.m. Eastern Time, with analysts expecting a 0.7% leap.
February’s Case-Shiller house price index will be released at 9 a.m. As for April’s Chicago-area purchasing managers index will be uncovered at 9:45 a.m.
Aside from that, a private indicator of China factory activity decreased in April, although still indicating expansion, which is in line with official data, which also demonstrated slower surge, which is a probable boost for the yellow metal.
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!