Forex Marketz Daily Forex News – Fully Markets Update
Gold futures were trading quietly during the morning Asian trade hours as the week came to a close in the Far East and Pacific Rim. The dollar extended gains made during yesterday’s session as the sawbuck was supported by solid U.S. inflation data. This boosted demand for the U.S. currency and sapped some strength from the non-interest bearing yellow metal.
As of 1 am GMT, the widely traded spot gold contract (XAU/USD) was down slightly by 0.1 percent. The bullion was last fetching $1,246.11 an ounce.
U.S. gold futures, for August delivery, were flat. They last traded hands at $1,246.30 an ounce.
The U.S. dollar index was still trading firm as it held onto gains made earlier this week thanks to U.S. consumer price data released yesterday.
Gold Traders Watch U.S. Inflation Data and Federal Reserve Comments
Looking at economic data out of the United States, consumer prices for June rose at their fastest pace in 6 ½ years. The monthly pace continues to grow steadily. This could keep the Fed on track for 2 more rate hikes this year.
Yesterday, Federal Reserve Board Chairman Jerome Powell said that he believes the economy is still in a “good place.” This is thanks to new a new government tax and fiscal spending programs. That should boost the country’s gross domestic product for the next three years.
The United States and China are set, to possibly, talk again on trade issues. This will only happen if China is “willing to make significant changes,” U.S. Treasury Secretary Steven Mnuchin said overnight.
