Forex Marketz Daily Forex News – Fully Markets Update
The widely traded gold futures contract fell lower overnight and into the Asian trade session on Tuesday. Treasure yields have moved higher, boosting the U.S. dollar, as traders digest news that Covid-19 contagion lockdowns are being eased in Europe and the United States.
However, fundamentally, there is still good support for the bullion. Governments and central banks are pouring in unprecedented amounts of fiscal support and accommodative monetary policy measures to ease the economic blow from the global Covid-19 pandemic.
This pandemic forced lockdowns around the world, curtailing travel, shuttering businesses and factories. This caused a spike in unemployment and the near shutdown of the global economy as activity cratered. Traders are now worried about the extent of the damage and how deep the global recession will be.
The spot gold futures contract is down one percent to trade at to $1,710.71 per ounce. This contract was down as much as 1.3 percent to trade at a low of $1,704.45 per ounce.
The U.S. gold futures contract, for front end delivery, closed overnight down 0.7 percent at $1,723.80 per ounce.
The spot silver futures contract was down 0.8 percent to trade at $15.12 per ounce and the spot platinum futures contract was trading flat at $759.50 per ounce.
Gold Traders digest News the United States is reopening the Economy
Global sentiment improved on the news that more countries as well as the world’s largest economy, the United States is exploring easing more lockdown restrictions.
To date, the coronavirus epidemic has infected 2.97 million people around the world and 205,948 people have died.
Traders Now Focus on Central Bank Decisions
On Wednesday, the U.S. Federal Reserve Board (Fed) will announce their monetary policy and interest rate decision. On Thursday, the European Central Bank (ECB) will announce their monetary policy decision for the month.
Both central banks have taken unprecedented measures to insulate their economies against the economic blow stemming from the Covid-19 contagion.
