Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts dipped lower as price levels neared a seven week low earlier in Asian trade hours. The U.S. dollar remains supported by stronger economic data and higher Treasury yields.
By 1 am GMT time, spot gold (XAU/USD) fell by 0.1 percent to $1,269.50 an ounce. Earlier it touched its lowest price level since mid-August at $1,268.60.
U.S. gold futures, for December delivery, lost some 0.3 percent to $1,272.50 per ounce.
The US dollar, this morning, rose 0.3 percent against a basket of major currencies. The almighty dollar was up 0.2 percent against the yen.
Looking at U.S. economic data, manufacturing activity rose to a near 13-1/2-year high in September. Disruptions to the supply chains from hurricanes Harvey and Irma caused factories to take longer to deliver goods. This, in turn, boosted prices in raw materials.
Gold Investors also watch North Korea
Looking at geopolitical events, the White House, yesterday, ruled out talks with North Korea. They will only discuss the fate of Americans being held by the regime. Once again, President Donald Trump seems to be rebuking Secretary of State Rex Tillerson. Tillerson, earlier in the day, said that Washington was directly communicating with the rogue state on its nuclear and missile programs.
Dallas Fed President Robert Kaplan said Monday, that the U.S. Federal Reserve will need to “look hard” at whether it should raise rates in December. He did say that there is no need to wait for inflation to actually get to, or sustain at, the Fed’s two percent target before doing so.
He also said that the Fed’s own actions and “not transitory factors” are responsible for weak inflation. He said that the U.S. central bank should wait to raise rates again until inflation hits its two percent goal.
