Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts fell lower this morning during the Asian trade session. Traders were digesting better than expected retail sales data out of the United States. This could keep the Federal Reserve Bank from cutting rates in the near term. As a result, the bullion retreated from a 14 month high price point.
As of 1:20 am GMT, the widely traded spot gold futures contract was trading lower. This contract shed 0.2 percent to trade at $1,338.97 per ounce. This comes after the spot contract hit its highest price point since April 2018 on Friday.
The U.S. gold futures contract, for front end delivery, was down 0.3 percent to trade at $1,340.20 an ounce.
The dollar index, which measures the greenback against six other currencies, was trading near a two high during the Asian trade session.
Gold Traders are waiting on this Week’s FOMC Monetary Policy and Rate Decision
Traders are focusing in this week’s monetary policy decision from the Federal Open Market Committee (FOMC) due on Wednesday.
Last week, for the month of May, U.S. retail sales rose and sales for April were revised higher. This suggests a pick-up in consumer spending. This could also indicate that the economy still has steam and that a second quarter slowdown might not be as bad as expected
The retail report also sent the dollar front end Treasury yields higher as well as flattening the yield curve. This was a boost for the dollar which weakened the bullion. A stronger dollar makes it more expensive for traders to buy, store and insure the yellow metal.
