Forex Marketz Daily Forex News – Fully Markets Update
The price of spot gold (XAU/USD) steadied a bit during North American trade hours, overnight, into this morning’s Asian session, after hitting close to a fresh seen week high. Investors are waiting on today’s non-farm payroll data and more insight into the Federal Reserve’s interest rate hike path.
The yellow metal has rallied for most of July as the US dollar shrunk. Investor expectations for a third Fed rate hike this is year is waning.
US inflation has been tepid even though the labor market appears to be in the shape in years. Despite double-digit earnings growth, n he States, during the second quarter. Reduced rate hike expectations will weaken the dollar, making dollar priced yellow bullion less expensive for non-US traders.
This morning, spot gold rose 0.14 percent to $1,268.01 per ounce. The metal touched $1,258.20 earlier in the session. This was its lowest price point in almost a week. US gold futures, for December delivery, settled this morning at $1,274.40 per ounce.
Dollar Price Level Supports Gold
The US dollar, against the euro, the dollar steadied above a 2-1/2-year low. This was hit in on Wednesday. However, the dollar still looks weak thanks to investor doubts about whether there will be another Federal Reserve interest rate rise this year.
The yellow metal is still stuck in the trading range from $1,200 to $1,300 per ounce. There is nothing big to worry investors to break out of this range, for now. Especially to the upside. On the downside, there is solid support lining up at $1,200.
