Gold stands still waiting for comments

11 January, 2019

On Thursday, gold was intact due to the fact that market participants waited for comments from Fed Chair Jerome Powell in the face of hopes that the head of the US key financial institution is going to reaffirm a pause in the US monetary policy tightening.

On the Comex exchange February delivery gold futures surged no more than 0.05% ending up with an outcome of $1,292.70 a troy ounce.

As a rule, higher interest rates put pressure on demand for the yellow metal that doesn’t bear interest.

By the way, Powell’s last appearance backed equities because the statesman emphasized that the major US bank could be patient enough on further policy tightening. A great number of traders are assured that the Federal Reserve is going to pause its rate lifts for this year. They also give a 14% likelihood that it will actually have interest rates cut by the end of 2019.

On Wednesday, presidents of four of the 12 Fed regional financial institutions told that they would like to see greater clarity on the state of the American economy before extending the Fed’s rate lift campaign any further, dropping a hint that the major US bank could take months before another lift is carried out.

St. Louis Fed President James Bullard, who has a reputation of the most dovish policymaker, came up with a suggestion that further tightening could potentially tip the American economy into recession.

Market experts told that the yellow metal is actually getting a bit support out of a dovish Fed stance as well as institutional instability in America.

As for other metals, silver futures tumbled by 0.19% ending up with $15.705 a troy ounce. Moreover, palladium futures ascended by 0.39% trading at $1,274.30 an ounce. Platinum futures tacked on by 0.24% being worth $827.30.

Copper tumbled by 0.72% trading at $2.638 a pound.


Source  
Gold fell below $2 000 first time in a week12 Aug, 2020  

XAU/USD is decreasing for the third day in a row. What are the reasons? It all started from Friday's NFP report. US non-farm payrolls and unemployment rate came out better...

Gold & Silver Continue to Fly7 Aug, 2020  

Gold is making only new highs. It seems that gold prices remain in a bullish momentum. The focus remains on the shape and size of the next...

How to trade EUR after the ECB rate statement?2 Jun, 2020  

The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will...


Oil demand is recovering26 May, 2020  

The WTI price approaches the retracement level at 35. The head of the International Energy Agency forecasted that the oil market will recover...

Saudi Aramco: temporary balance12 May, 2020  

Since its IPO in December 2019, Saudi Aramco's stock price has been consistently declining. Before the New Year, it traded at $35. But in the second week...

Gold goes down on trade agreement3 May, 2019  

On the Comex exchange, June delivery gold futures headed south by about 0.7% concluding the trading session at $1,275.15 an ounce...


Dollar rallies on Powell's remarks27 Feb, 2019  

On Wednesday, the evergreen buck ascended in Asia after Fed Chair Jerome Powell came up with a positive assessment of the American economy...

The yellow metal stands still8 Feb, 2019  

The postponed US-China summit as well as weaker estimates for the EU are playing into a decelerating global surge narrative, which could...

Dollar surges versus counterparts6 Feb, 2019  

The evergreen buck was held back from dismal American services data, notwithstanding experts reaffirming the services sector was still firm...