Forex Marketz Daily Forex News – Fully Markets Update
The price of spot gold (XAU/USD) held firm this morning during Asian trade hours, near a seven week high. There was weaker than expected US economic data which could put a damper with the Federal Reserve pursuing an aggressive rate hike stance for the remainder of the year.
This morning, at midnight GMT, spot gold traded little changed at $1,268.00 per ounce. The bullion hit $1,273.97 in the North American session. This was the highest level that gold has seen since June 14. US gold futures however, for December delivery, fell 0.4 percent to $1,274.10.
Economic data, out of the United States overnight, was a disappointment. Factory activity slid from a three-year high in July. There was a slowdown in new orders. Also, consumer spending barely rose in June. This is setting the stage for a slower than expected economic expansion in the third quarter.
US Dollar Moves Higher but Gold Remains Firm
The US dollar hit a 15-month low on Tuesday. There is growing political turmoil in Washington, not to mention the poor economic data that is keeping the Federal Reserve’s policy outlook uncertain.
North Korea is also propping up the yellow metal. Right now, the United States does not seek to topple the North Korean government. The US would prefer dialogue with Pyongyang at some point. However, North Korea must accept that it can never be a nuclear power. These were statements made by US Secretary of State Rex Tillerson on Tuesday.
In other news from the States, President Donald Trump has also accepted new congressional sanctions on Russia. Tillerson made these remarks in contrast with those of Vice President Mike Pence. Pence said that the new sanctions bill showed Trump and Congress speaking “with a unified voice.”
