Forex Marketz Daily Forex News – Fully Markets Update
The price of gold futures found some support thanks to as oft US dollar this morning. The yellow metal extended gains from the North American session into Asia as the sawbuck remained pressured after the release of the
Federal Reserve’s (FOMC) July monetary policy meeting. The minutes hinted at a delay with further rate hikes.
At 1:00 am GMT, Spot gold (XAU/USD) was up 0.4 percent at $1,287.21 per ounce. This is after gaining nearly one percent the previous day. US gold futures, for December delivery, were up 0.8 percent to $1,293.30 per ounce.
The dollar was on the defensive this morning after the FOMC minutes showed that policymaker were increasingly wary of recent softness in inflation. The weaker inflation data could delay another rate hike.
Inflation Worries Dollar Traders which is good for Gold
Federal Reserve policymakers appeared increasingly worried over a recent weak inflation report. Some policy members called for halting interest rate hikes until it was clear the trend was transitory. This was in the minutes of the US Federal Reserve’s last policy meeting.
The central bank is at the mid-point on its current rate hike path to normalize interest rates. The US economy has shown further improvement even without fiscal stimulus, San Francisco Federal Reserve President John Williams said in a recent CNN interview.
Also weakening the dollar was ongoing political drama stateside. US President Donald Trump announced yesterday, via Twitter, that he was disbanding two of his corporate economic councils. This comes after a number of embarrassing resignations due to Trump’s comments on Virginia’s racial protests and violence.
