Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts inched lower during the Asian trade session on Wednesday. There is improving sentiment in the global financial markets as countries start to reopen their economies. There is also renewed political tensions between China and the United States over Covid-19 commentary out of the Trump Administration.
The dollar is also trading higher, which has capped gains with the yellow metal. In the dollar index, which measures the greenback against six other currencies, the dollar was up for the fourth day in a row.
As of 1:20 am GMT, the widely traded spot gold futures contract, was down 0.1 percent to trade at $1,704.88 per ounce.
The U.S. gold futures contract was up 0.2 percent to trade at $1,713.00 per ounce.
Global equities are creeping higher as sentiment improves. Government are starting to formulate post Covid-19 pandemic strategies.
Gold Traders Monitor easing of Lockdown Restrictions
Countries in the European Union, like Italy are starting to ease restrictions and start the process of reopening their economies. The United States is also easing stay at home orders as the White House mulls disbanding their Covid-19 committee/task force.
The U.S. has released data that shows their trade deficit has hit its highest level in over a year. This is data for the month of March and comes as there was a record decline in exports. This offset a decline in imports.
Economists think that there is a possibility that the U.S. economy could start to recover in the last half of 2020. Right now there is more than enough signals from recent data that is showing that the U.S. economy is in the middle of its worst recession in decades.
However, the Federal Reserve has tempered expectations of a recovery as they say growth will be uneven and slow for the remainder of the year if not longer.
Traders monitor Tensions between China and the United States
The war of words between the world’s two largest economies continue to possibly derail a fragile trade war truce in place. The White House continues to insist that China had more to do with the release of the Covid-19 virus.
Intelligence officials say there is no evidence of this. China has called the U.S. rhetoric “evil” and baseless.
