Forex Marketz Daily Forex News – Fully Markets Update
The price of the spot gold contract rose during the Asian trade session on Friday. The contract is now trading above $1,280 per ounce. Recent economic data out of the United States, released on Thursday, came in soft. This reignited hopes that the Federal Reserve might cut rates before the end of the year.
As of 2:50 am GMT, the widely traded spot gold contract was trading mostly steady at $1,283.41 per ounce. This spot contract gained 1.1 percent overnight. The spot contract was at a one week high of $1,287.23 per ounce on Thursday. The spot contract has gained half a percent so far this week.
U.S. gold futures, for front end delivery (June expiration) was down 0.2 percent to trade at 1,282.40 per ounce.
The other spot metal contract, like silver was down 0.3 percent to trade at $14.54 per ounce. The spot palladium contract was down 0.3 percent to trade at $1,314.25 per ounce.
The Dollar weakens which Supports Gold Prices
The U.S. dollar has softened after hitting its highest price level in two years. Weak U.S. economic data as well as the ongoing trade war with China could slow the world’s largest economy. This has increased trader expectations that that the U.S. central bank will cut the Fed Funds rate by at least 25 basis points by December.
Other economic data, released yesterday, showed that new U.S. single-family homes fell from a better than 11 year high in April. Prices recovered and manufacturing activity hit its lowest level in in nearly ten years in May. This points to a sharp slowdown in economic growth in the United States.
