Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts gained Thursday during the Asian trade session. The price of the spot contract climbed above the $1,500 overnight as traders are digesting accommodative monetary policy from global central banks.
Traders are also growing more concerned over a slowing global economy and worried about a global recession setting in thanks to trade wars.
As of 1:05 am GMT, the popular spot gold futures contract was trading higher. This contract added 0.3 percent to trade at $1,505 per ounce.
Yesterday, the spot contracted gapped higher by two percent to trade above $1,500 for the first time in six years.
U.S. gold futures, for front end deliver, however, lost ground. This contract gave up 0.3 percent to trade at $1,515.30 an ounce.
Yesterday Chicago Fed President Charles Evans said that he was open to another rate cut, if needed, to boost inflation and support economic growth. As a result, Fed Funds futures are now pricing in another rate cut at their September.
Gold Traders Worry about Economic Growth and Digest Accommodative Monetary Policy
Traders are growing more and more worried over slowing global economic growth. This is dragging down currencies supporting safe haven assets like the yellow metal.
More and more central banks are hinting at cutting rates and other accommodative measures to boost economic growth and low inflation. This has dragged yields down and hurt the Forex markets. In return, supporting safe haven commodity assets.
Fed funds futures are now pointing to increasing odds that the Federal Reserve will cut rates three more times this year to avoid a recession. This will also support the bullion in the near term.
