Forex Marketz Daily Forex News – Fully Markets Update
The prices of gold contracts fell this morning as the US dollar firmed. The bullion is still not far off levels touched in the previous session. The yellow metal had risen more than one percent on tensions on the Korean peninsula.
As of 12:40 am GMT, spot gold (XAU/USD) lost 0.1 percent to $1,308.90 per ounce. Yesterday, it rose over one percent to claim its largest intraday percentage gain since September 7. US gold futures, for December delivery, gained 0.1 percent to $1,312.60 per ounce.
The almighty dollar, dollar index, rose against a basket of six currencies today. The euro was weighed down by election results in Germany. Forex traders are worried about a warning by the European Central Bank president against hasty policy shifts.
Gold Traders focus on Geopolitical Developments
German Chancellor Angela Merkel is now beginning the tough job of trying to build a government. This comes after securing her fourth term as chancellor. Merkel urged the center left Social Democrats not to shut the door on reforming their “grand coalition.”
In Asia, the North Korean foreign minister said that President Donald Trump had declared war on North Korea. He also said that his country reserved the right to take countermeasures. This includes shooting down US bombers. Even if they are not in its air space.
The US Republicans, in a last ditch effort, to repeal Obamacare appeared, once again, to be doomed. Senator Susan Collins became the third Republican senator to announce opposition to the bill. She will vote “no.”
Japanese Prime Minister Shinzo Abe said he will be dissolving the Japanese parliament’s lower house for a snap election. Abe is seeking a mandate to counter a volatile North Korea as well as to rebalance the social security system.
