Gold holds below $1,500, shrugs off dollar's drop from 2-year high

Economies.com
2019-10-08 04:46AM UTC

Gold futures edged lower during the Asian trading hours today, shrugging off the US dollar's bounce from its highest since May 12, 2017, ahead of the release of major US economic data, including the US Fed Chair Jerome Powell's speech.

 

Gold futures (December delivery) were lower by 0.17% to $1,496.10 an ounce as of 04:32 GMT, after opening at $1,498.70, as the futures opened on a bearish price gap after it closed yesterday at $1,504.40, while the dollar index rose by 0.01% to 98.97 points from the opening of 98.98.

 

Investors are anticipating the release of the US PPI readings today, with forecasts for the the monthly reading to stabilize at 0.1% growth, unchanged from the August, the core PPI reading is expected to reflect a slower growth rate to 0.2% vs. 0.3% in August, and the annual reading is expected to stabilize at 1.8%.

 

In addition to the core annual PPI reading, which is expected to also stabilize at 2.3%, unchanged from August reading, and will be followed by the Chicago Fed Chairman Charles Evans' at the Chicago Rotary Club Luncheon.

 

The US Federal Reserve Governor, Jerome Powell, will also deliver a speech titled "Data Dependence in an Evolving Economy" at the 61st Annual Meeting of the National Association of Business Economics, in Denver, and will participate in a discussion at the Fed Listens event in Kansas City.

 

Investors are also anticipating the release of the the US Fed last meeting minutes, which was held on September 17 and 18, and saw the second rates cut this year by 25 basis points to 1.75% and 2.00%, in line with the market's expectations, and was followed by the FOMC's forecasts about growth, inflation, unemployment and the future of the US interest rates for the next 3 years.

 

Bearing in mind that Fed Governor Powell, said at the end of the Fed listens event last week that the US economy is in an overall good place and that it's his job to keep it there as long as possible, citing that inflation in near the Fed's target at 2%.

 

Powell also said on Friday that the US economy is facing some longer-term challenges, and said that the low interest rates make it harder to cut them in case of a recession, and added that the bank is examining strategies that will help it achieve its inflation goal.

 

The markets are also looking forward for the next round of the US-China trade talks in Oct 10 and 11, in attempts to reach a final trade deal that will end the ongoing trade disputes between the two countries and to obviate the impending escalation before the US administration's tariffs increase decision on Chinese imports worth $250 billion to 30% from 25%, which is scheduled to take effect starting on Oct 15th.

 

The Chinese Vice Premier, Liu He, and Governor of the People's Bank of China, Yi Gang, confirmed their visit to Washington for the next round of talks in Oct 10 and 11, which increased the market hopes about some sort of a deal that will lead to the postponement of the US administration's tariffs increase decision.

 

President Trump said on Friday that he believes there is a good chance of a trade deal with China, and added that when he talks with leaders of other countries he is doing it appropriately, and stressed his concerns about that the Democratic party members "the rivals of his Republican party" are crippling his efforts for a final trade deal with China.

Commodities News

Gold News

Commodities

Gold hits fresh record highs, marking a 6% quarterly profit
2024-03-28 20:28PM UTC
Gold Prices Gold prices rose on Thursday to fresh record highs while the dollar eked out gains ...
Copper News

Commodities

Copper edges up while facing pressures from Chinese demand concerns
2024-03-28 16:45PM UTC
Copper prices rose modestly on Thursday while the dollar gained ground, with ongoing concerns about ...
Oil News

Commodities

Oil prices extend gains after strong US growth data
2024-03-28 13:03PM UTC
Global Oil Prices Global oil prices extended their gains in American trade on Thursday and hit ...

Commodities Technical Analysis

Technical Analysis

Commodities

Wheat price returns to the bullish correction – Forecast today - 29-03-2024
2024-03-29 01:50AM UTC
Wheat Price Analysis Expected Scenario: Continuing Bullish Momentum Wheat price rallied ...
Technical Analysis

Commodities

Sugar price completes the positive pattern – Forecast today - 29-03-2024
2024-03-29 01:49AM UTC
Sugar Price Analysis Expected Scenario: Continuing Bullish Trend Sugar price managed to breach ...
Technical Analysis

Commodities

Soybean price keeps the positive stability – Forecast today - 29-03-2024
2024-03-29 01:49AM UTC
Soybean Price Analysis Expected Scenario: Continuing Bullish Trend Soybean price attempted to ...