Forex Marketz Daily Forex News – Fully Markets Update
The spot gold futures contract rose to its highest price points in two weeks during the Asian trade session today. The price of the bullion was supported by a weak dollar as well as soft U.S. housing data and an upcoming Fed Funds rate cut by the U.S. Federal Reserve at the end of the month.
As of 1:30 am GMT, the spot gold futures contract was trading steady at $1,425.87 per ounce. This contract, earlier in the session hit its highest price point since July 3 at $1,428.40 per ounce.
U.S. gold futures, for front month delivery, was trading higher. This contract added 0.3 percent to trade at $1,427.30 an ounce.
The dollar index was down 0.1 percent. This makes the yellow metal less expensive for traders using other currencies to buy, store and insure.
The dollar had hit a one week high, earlier in the week, at 97.444 thanks to solid retail sales data and a weakness in the British pound and euro. The dollar lost ground as Treasury rates fell thanks to weaker than expected U.S. housing market data and renewed concerns surrounding the trade conflict between the United States and China.
Gold Traders Digest weak Housing Data out of the United States
Housing data, released overnight, showed that U.S. home building fell for the second month in a row for the month of June. They are at a two year low and supports an overall weakness in that sector despite low mortgage rates.
The Federal Reserve Board, at their monetary policy and rate decision scheduled for July 31, is expected to cut their headline Fed Funds rate by 25 basis points. Some traders are hoping for an unlikely cut of 50 basis points.
