Forex Marketz Daily Forex News – Fully Markets Update
Gold futures inched higher during Wednesday’s Asian trade session. The bullion recovered from a one week low set yesterday. Traders are expecting the U.S. Federal Reserve and other central banks to cut rates this month. There are also mounting tensions in the Middle East between the United States and Iran.
As of 1:30 am GMT, the widely traded spot gold futures contract was up 0.2 percent to trade at $1,420.40 per ounce. This contract hit its lowest price point since July 31, yesterday, at $1,413.80 per ounce.
U.S. gold futures, for front end delivery were trading flat during the Asian session. This contract was last trading at $1,420.80 an ounce.
The dollar index was up to trade at a five week high. The dollar index rose 0.5 percent on Tuesday.
Gold Traders Monitor a Number of Global Risks from Rate Cuts to the Middle East
The markets are pricing in a 100 percent probability that the Federal Open Market Committee (FOMC), the monetary policy arm of the Federal Reserve, will cut its Fed Funds rate by 25 basis points on July 31.
The European Central Bank is expected to cut its rate by 10 basis points tomorrow and signal more easing to occur by their September meeting. The Turkish central bank is also expected to slash rates when they meet this week.
According to the United States, a U.S. Navy warship took defensive action against a second Iranian drone, according to the Pentagon on Tuesday. This occurred last week, in the Strait of Hormuz. However, the ship did not see the drone go into the water.
In trade news, U.S. Trade Representative Robert Lighthizer and senior U.S. officials will travel to China on Monday. They will meet with Chinese officials to discuss trade issues.
