Forex Marketz Daily Forex News – Fully Markets Update
The spot gold futures contract inched higher during the Asian trade session on Tuesday. The U.S. dollar is trading near a three month low price point and traders are worried that there will be a deep economic blow from the Covid-19 (coronavirus) pandemic.
Traders are also waiting on the Federal Reserve Board to announce monetary policy and rates at the conclusion of their two day meeting. This is scheduled for Wednesday, tomorrow.
As of 1:15 am GMT, the widely traded spot gold futures contract was up 0.4 percent to trade at $1,700.78 per ounce.
The U.S. gold futures contract, for front end delivery, was trading at the flat line fetching $1,705.60 per ounce.
Looking at the white metal, silver, this spot contract was down 1.1 percent to trade at $17.66 per ounce. The spot palladium contract was down 0.3 percent to fetch 2,016.15 per ounce and the spot platinum contract added 0.1 percent to trade at $833.10 per ounce.
The U.S. dollar index, which measures the greenback against six other currencies, was trading near a three month low price point. A weaker dollar is good for the yellow metal as it makes it less expensive to buy, store and insure.
Gold Traders watch moves by the Federal Reserve Board
Yesterday, the U.S. Federal Reserve Board eased terms with their “Main Street” lending program. This is to encourage more businesses and banks to participate in order to kick start an economic recovery.
Traders are now waiting on the Fed’s two day monetary policy meeting, which starts today, to end. Traders have stopped pricing in the possibility of negative interest rates anytime soon.
FOMC Rate Decision in Focus
The yellow metal is not likely to make big moves ahead of the Federal Reserve Board’s monetary policy and rate decision.
The Federal Open Market Committee (FOMC), which is the monetary policy arm of the Fed, will announce monetary policy tomorrow along with their economic projections. Traders will also dissect their monetary policy statement and listen closely to Fed Chair Jerome Powell’s press conference.
