Forex Marketz Daily Forex News – Fully Markets Update
Gold futures inched lower during the Asian trade session on Wednesday. The price of the yellow metal is trading near a two week low thanks to a stronger U.S. dollar. There are some signs that the trade tensions between China and the United States are abating a bit. Traders are also waiting on the release of the monetary policy meeting minutes, later today, from the U.S. Federal Reserve’s last policy meeting held earlier this month.
As of 2:40 am GMT, the widely traded spot gold contract was down 0.1 percent from its last close to trade at $1,273.70 per ounce. Yesterday, the spot contract was trading at its lowest price point since May 3 at $1,268.97 per ounce. U.S. gold futures, for front end delivery, were flat trading at $1,273.30 an ounce.
The yellow metal has now lost five percent since its February 2019 high price point at $1,346.73 per ounce.
The dollar is trading at an almost four week high. The U.S. currency is being supported by higher U.S. Treasury yields. They rose overnight after the United States eased trade sanction against Chinese telecommunications giant Huawei Technologies.
Traders Watch Trade war Headlines which weaken Gold Prices
Overnight, the U.S. Department of Commerce granted Huawei a license to buy U.S. technology and goods until August 19. This is to give other telecom operators, that rely on Huawei, time to make alternative arrangements.
In other trade related headlines, the Chinese Ambassador to the United States Mr. Cui Tiankai said that China is now ready to resume trade talks with the United States. He blamed the U.S. for “changing its mind” on tentative trade deals.
