Forex Marketz Daily Forex News – Fully Markets Update
Overnight, the spot gold futures contract fell to a two week low and is now trading below the key technical level at $1,500 per ounce. Traders are seeing cautious risk appetite for riskier asset classes as Treasury yields rose. This sapped the bullion’s strength as traders are waiting on central bank decisions and rate cuts.
The widely traded spot gold futures contract was down 0.3 percent to trade at $1,497.30 per ounce. This was the spot contract’s lowest price point since August 23.
The U.S. gold futures contract, for front end delivery, also fell 0.3 percent. This contract was trading at $1,510.70 per ounce.
U.S. Treasury yields gained ground as risk appetite improved. Global equities are also trading higher. Traders are still expecting accommodative monetary policy measures from key central banks.
China also said it they would cut how much money that banks must hold as reserve. This is the reserve requirement ratio (RRR). Federal Reserve Chair Jerome Powell said the Fed will continue to “act as appropriate” in order to keep the economy expanding.
Gold Traders also Monitor Trade News and Wait on the Upcoming ECB Decision
Traders are cautiously optimistic after U.S. Treasury Secretary Steven Mnuchin, told Fox News that “a lot of progress: has been made towards a trade deal with China. He said that the United States is “prepared to negotiate.”
However, traders were cautious during the Asian trade session. They are sitting on the sidelines ahead of the European Central Bank meeting. This meeting is scheduled for Thursday and the markets are expecting at least a 20 basis point rate cut and other accommodative monetary policy stimulus including the restart of quantitative easing.
