Forex Marketz Daily Forex News – Fully Markets Update
The gold futures contracts, especially the spot futures contract, were cautiously higher during the Asian trade session today. The spot contract is still trading near a four week low price point hit during the previous session.
Traders are now focusing on tomorrow monetary policy and interest rate decision from the European Central Bank. They are also waiting on stimulus measures out of German, which is the Eurozone’s largest economy.
As of 1:20 am GMT, the spot gold futures contract, was up 0.4 percent to trade at $1,491.60 per ounce. On Tuesday, the spot contract hit its lowest price pointy since August 13 at $1,483.90 per ounce.
U.S. gold futures, for front end delivery, are trading unchanged at $1,499.3 an ounce.
The dollar index, which measures the U.S. dollar against six other currencies, was trading steady during the Asian trade session.
Gold Traders wait on the Looming ECB Decision
Traders are now waiting on tomorrow’s European Central Bank’s monetary policy and rate announcement. The ECB is expected to deepen its negative interest rate policy and introduce other monetary stimulus.
Traders are expecting that the ECB will release a monetary package that includes a rate cut. They also hope for a pledge to keep rates low for longer and new measures supportive of commercial banks over the side-effects of negative rates.
This ECB decision could set the tone for next week’s U.S. Federal Reserve and the Bank of Japan monetary policy decisions. The Bank of Japan could discuss the expansion of its monetary stimulus program as the ongoing trade war continues between the world’s two largest economies.
Investor sentiment is cautiously improving. Ongoing political tensions out of the United Kingdom and Hong Kong are still present but have lessened a bit. This has weakened the allure of safe haven assets.
A lot of the positive sentiment in the financial markets is thanks to a restart of trade talks between China and the United States. They are scheduled to meet in October. However, optimism for a trade deal was hampered after comments from White House trade adviser Peter Navarro. He is urging patience and said that the trade talks must be allowed to “take its course.”
