Forex Marketz Daily Forex News – Fully Markets Update
Gold prices traded steadily this morning despite a weakened U.S. Dollar. The almighty buck did pare some of its losses, however as the government shutdown in the United States came to an end.
As of 1 am GMT, spot gold (XAU/USD) was flat at $1,334.36 an ounce by 0111 GMT.
U.S. gold futures rose nearly 0.2 percent at $1,333.90.
The U.S. dollar index, which measures the dollar against a basket of major Forex partners, was trading at 90.32. Still close to its three year low of 90.113 reached on January 17.
The U.S. Congress voted, overnight, to end a three day government shutdown. They approved another short term funding bill. The Democrats accepted promises from Republicans for a broad debate on the future of illegal immigrants and DACA.
Gold Traders Watch Central Bank News
This morning, Asian stock bourses surged higher after the United States voted to reopen the government. Wall Street hit record highs, again, overnight.
Today, traders are starting to focus on Thursday’s European Central Bank’s monetary policy meeting for clues to future shifts in the bank’s monetary policy.
The ECB is unlikely to end a pledge to buying bonds. Policy makers need more time to assess the outlook for the economy and the euro.
Traders are also waiting on a Bank of Japan policy announcement on due later on Tuesday. Economists do not expect the central bank to signal any monetary policy shift.
The possibility of major central banks moving closer to normal policies has been a key problem for the dollar.
Such policy shifts, by major central banks, would change interest rate dynamics. For the last couple of years, the U.S. Federal Reserve was the only central bank raising rates.
