Forex Marketz Daily Forex News – Fully Markets Update
Gold future contracts were slightly higher during Asian trade hours Thursday morning. However, the yellow metal was close to a six month low as a stronger dollar limited any recovery.
As of 1 am GMT, the widely popular spot gold future contract (XAU/USD) was up a mere 0.1 percent. The bullion was last fetching $1,269.05 an ounce. Yesterday, the yellow metal was at its lowest level since the end of December at $1,267.40 an ounce.
U.S. gold futures, for August delivery, fell. They were down 0.3 percent to trade at $1,271.30 per ounce.
The dollar index was near an 11 month high this morning. It was last trading at 95.102. It hit, overnight, 95.299 overnight. It was last at that level in July 2017.
Gold Traders watch Global Economic Headlines and Trade News
Looking at U.S. economic data impacting the yellow metal, the employment market is not that firm. The Federal Reserve will continue to gradually raise rates thanks to a buoyant economy. These rate hikes will help the economy “balance its employment and inflation goals,” said Federal Reserve chairman Jerome Powell overnight.
Also in the news, Powell also said that, worry over U.S. trade policy are increasing with businesses. They are starting to wait on hiring. They are also starting to delay investment decisions. This is thanks to the high level of uncertainty.
A trade war between the China and the United States is starting to take effect on business confidence. This could cause the force central bank to downgrade its economic outlook. World policy makers are cautioning the United States to reign in a trade war.
