Forex Marketz Daily Forex News – Fully Markets Update
Gold futures rose for the third day in a row during Asian trade hours. The yellow metal is on the road for the fifth week in a row of gains as well.
As of 1 am GMT, Spot gold (XAU/USD) rose 0.1 percent to $1,324 an ounce. Prices hit a four month high of $1,326.56 an ounce back on Wednesday. Spot gold is up 0.3 percent for this week.
U.S. gold futures are up 0.2 percent to $1,324.60 an ounce.
The U.S. dollar index, which measures the dollar against six Forex partners, was down 0.2 percent at 91.707. The dollar fell to its lowest since September 20, 2017 at 91.689.
Gold Investors watch ECB News
The euro also rose against the sawbuck. The European Central Bank said that could begin to end its 2.5 trillion euro stimulus program in 2018.
The ECB will revisit its language on monetary policy in early 2018.This was in its December meeting minutes. This shows that policymakers could soon start preparing the financial markets for the end of their quantitative stimulus.
A stronger euro should boost demand for gold by making dollar cheaper, gold is priced in the USD and will make it a better investment for European investors.
The US was also under pressure after economic data showed U.S. producer prices fell for the first time in nearly 18 months for the month of December. There was a falloff for costs of services.
Weak inflation at the producer prices level could add to concerns that inflation will remain tepid. This could become even more of a problem for the Fed. The result? The U.S. Federal Reserve will be more cautious about raising interest rates this year.
