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Gold Prices soften this Morning in Asian Trade

goldGold futures inched lower this morning during Asian trade hours. The U.S. dollar continued to recover this morning from a better than three year low. Investors are waiting on the latest Federal Open Market Committee (FOMC) monetary policy meeting minutes from January’s policy meeting. They will be looking for direction with interest rate hikes.

As of 1 am GMT, spot gold (XAU/USD) was lower by 0.2 percent. The bullion was trading at $1,343.22 an ounce.

U.S. gold futures fell by 0.8 percent to trade at $1,345.70 per ounce.

The U.S. dollar index, which measures the almighty buck against a basket of six rival Forex partners, rose 0.2 percent to trade at 89.295.

The U.S. dollar is showing signs of a recovery. Investors see a bargain after the sawbuck hit a better than three year low last week.

Asian equities were also lower to mixed Tuesday morning. This comes after European equities broke their win streak, yesterday.

Gold Traders wait on the FOMC Minutes

Today, during North American trade hours, the Federal Reserve will release its minutes of the FOMC’s last monetary policy meeting. This was held on January 30 to 31. Besides the outlook on rates, investors will waiting to see what the Fed thought of the recent volatile selloff in the equity markets.

Euro zone finance ministers expressed support to allow their bailout fund ESM to become a backstop for the Single Resolution Fund (SRF) for Eurozone commercial banks. This was from the chairman of the ministers Mario Centeno at a recent news conference, held yesterday.

In other European headlines, the German Social Democrats (SPD) is voting in a postal ballot. This ballot will decide whether the party should proceed with the agreement its agreement to renew their power-sharing alliance with the German Chancellor Angela Merkel’s party.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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