Forex Marketz Daily Forex News – Fully Markets Update
Gold future contracts were steady this morning during Asian trade hours. They are just below a one month high set during yesterday’s trade session. Traders are watching central bank decisions. The European Central Bank, yesterday, kept rates and monetary policy as is. This was expected. They will start to wind down their stimulus program by year end.
Spot gold (XAU/USD), by 1 am GMT, was flat. They were trading at $1,301.31 per ounce. Yesterday, the yellow metal hit its highest price level since May 15 at $1,309.30 an ounce. The bullion is on course for a second weekly gain in a row.
U.S. gold futures, for August delivery, fell this morning. They are down 0.2 percent to trade at $1,305.10 per ounce.
The European Central Bank will wind down it quantitative stimulus program by the end of the year. The central bank also sees rates staying steady “at least through the summer of 2019”
Gold Traders watch ongoing Trade War Concerns
In the headlines, President Donald Trump has made up his mind to slap “pretty significant” tariffs on Chinese products. Beijing warned that China will respond in kind if Washington continued to fuel simmering trade tensions between the two economic giants.
Tough sanctions will remain on North Korea. The country must its complete denuclearization. This comes from remarks made by the U.S. secretary of state. This does not go with what North Korea is saying. They think that the process would be phased.
Also in the headlines, China’s economy is slowing thanks to a stiff crackdown on risk asset lending. This has made borrowing costs higher for both consumers and corporations. Economic data, released yesterday, does point to slowdown for the month of May.
Looking at central bank news, for today, the Bank of Japan will discuss today macro-conditions dragging their economy as well as a very weak inflation. They might even discuss an exit fro their unprecedented ultra-loose monetary policy.
