Forex Marketz Daily Forex News – Fully Markets Update
Gold futures nudged higher during Asian trade hours today as investors were cautious before the release of the last policy meeting minutes from the U.S. Federal Reserve Board later today. The United States will also release the Fed’ Beige book. The policy minutes should offer investor’s clues as to the outlook of monetary policy.
As of 1 am GMT, Spot gold (XAU/USD) was up 0.1 percent to $1,281.40 per ounce. U.S. gold futures, for December delivery, were fairly flat at $1,281.30.
Outgoing Federal Reserve Chair Janet Yellen said, on Tuesday, that the Federal Reserve is “reasonably close” to its goals. They should keep raising rates, gradually, to avoid the dual pitfalls of letting inflation move below target for too long a period of time, and driving unemployment down too far.
Gold traders Watch Economic Data
In other economic headlines, U.S. home sales rose more than expected for the month of October. This comes as hurricane related disruptions have eased. However, there is a chronic shortage of houses. This is pushing prices above the reach of first-time buyers. This will be an obstacle going forward.
The Bank of Japan is dropping, intentional, and subtle hints that it could move away from crisis mode stimulus earlier than expected. This could happen with a future rate hike in with the central bank’s yield target.
Bank of England policy makers have spelled out their differences over the Bank of England’s first interest rate hike in a decade. They are focused on how to determine when low unemployment will push up inflation.
After the collapse of German coalition talks, the prospects for a move forward in European cooperation, driven by new governments in Berlin and Paris, look dimmer and dimmer. Especially when looking at Brexit talks.
