Forex Marketz Daily Forex News – Fully Markets Update
Gold futures rose for the second day in a row during Asian trade hours. The dollar extended losses after the minutes from the last monetary policy FOMC minutes were a bit dovish towards interest rate hikes for the rest of the year.
By 1 am GMT, Spot gold (XAU/USD) was higher by early morning hours. The bullion gained 0.1 percent to trade at $1,294.58 per ounce. The yellow metal, in the previous trade session, was up 0.2 percent.
U.S. gold futures, for June delivery, was also up. They gained 0.3 percent at $1,294 per ounce.
The venerable U.S. dollar index, which measures the dollar against six other currencies, was down 0.1 percent to trade at 93.925.
Gold Traders react to the last FOMC Minutes which were a tad Dovish
Looking at economic headlines, and the FOMC minutes from May’s monetary policy meeting, most of the Federal Reserve policymakers said that it is likely that another rate hike will be needed “soon.” if the U.S. economic outlook remains solid. This was construed by traders as being a bit more dovish than expected.
In other headlines, President Donald Trump said that he will know soon, by next week, whether his meeting with Kim Jong Un will go on as scheduled. This raises even more concerns with plans that the meeting will even take place.
Also, President Donald Trump signaled a new direction with U.S.-China trade negotiations. He said that any deal will require “a different structure.” This fed concerns about the ongoing current negotiations. This also sent U.S. markets lower.
Turning towards the European Union, the European Central Bank can still end its quantitative easing program later this year. These were from comments from two ECB policymakers. This stances comes despite new economic data cast is signaling that the health of the Eurozone might be that good.
