Forex Marketz Daily Forex News – Fully Markets Update
The commodity universe is in play today during the Asian trade hours. The spot gold contract is firming as traders are worried that no trade deal will be reached between China and the United States before the December 15 tariff deadlines.
The spot palladium contract is also moving higher as it is challenging near the $1,900 per ounce price point. On Monday, this contract hit a new record high, intraday, of $1,898.50 an ounce and is currently up 0.19 percent to trade at $1,881.43 an ounce.
The spot palladium contract is up almost fifty percent in 2019 as supply is being squeezed. This contract has been setting record price points most of the year despite a weakening global auto sector.
The jump in palladium demand comes from ever increasing emission standards. Palladium is widely used in auto-catalysts for gasoline powered cars and global emission standards will increase in 2020.
The widely traded spot gold futures contract is also trading higher. This contract is up 0.12 percent to trade at $1,461.15 per ounce.
The U.S. gold futures contract, overnight during the North American trade session, closed lower. This contract shed 0.2 percent to fetch $1,464.9.
Gold Traders start to focus on Key Central Bank Monetary Policy and Rate Decisions
Wednesday and Thursday at central bank monetary policy and rate decision days. On Wednesday, the Federal Open Market Committee (FOMC) will announce their December monetary policy and Fed Funds Rate (FFR) decision.
The FOMC is most likely to keep their FFR at 1.75 percent. They will also keep to their data dependent and wait and see approach. Their economic outlook, Fed dot plot will be closely watched.
On Thursday, the European Central Bank (ECB) will announce their rate and monetary policy decision for December. This is the first rate decision under ECB President Christine Lagarde.
The ECB is also likely to stick to the sidelines. However, Lagarde’s commentary will make her mark on future monetary policy under her four year term as ECB President.
