Forex Marketz Daily Forex News – Fully Markets Update
The price of spot gold (XAU/USD) is holding steady near a seven week high. Tensions on the Korean Peninsula are boiling over, again, which has boosted the appeal for safe haven asset classes like gold. The US dollar is still trading near multi month lows a US economic data disappointed.
Spot gold hit its highest price level since June 14 at $1,270.98 per ounce in early trade. As of 1:00 am GMT, it was trading at $1,269.70 per ounce. This was little changed from Friday close. The yellow bullion gained about 1.1 percent last week for its third week of consecutive gains.
US gold futures, for August delivery, were up this morning by 0.1 percent to $1,269.8 per ounce.
North Korea Continues its Aggression Supporting Gold
Over the weekend, the United States flew two supersonic B-1B bombers over the Korean peninsula. This was a clear show of force on Sunday. The US Ambassador to the United Nations said China, Japan and South Korea need to ramp up their efforts after Pyongyang’s latest missile tests.
North Korea fired another ballistic missile on Friday. Experts said that it was capable of hitting Los Angeles and other US based cities. The United States and South Korea responded to this latest act of defiance by holding a joint missile exercise
In US economic news, the world’s largest economy, reported that its economic growth or gross domestic product (GDP) accelerated in the second quarter as consumers increased their spending. Businesses also invested more on equipment. However there are sticky and sluggish wage gains. This is casting a dark cloud over the growth outlook. It is increasing the odds against another Federal Reserve rate hike.
