GOLD: the era of $1 800
Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold surges to fresh 9-month maximums
Information is not investment advice
On Tuesday, gold managed to rally because traders awaited the publication of the minutes from the recent Fed policy gathering with hopes for them to confirm the major financial institution’s dovish policy stance.
On the Comex exchange, April delivery gold futures managed to jump by up to 1.38% concluding the trading marathon at $1,340.25 a troy ounce, which is its best value since May 14.
The major US bank is expected to uncover the minutes of its January 30 gathering when it left interest rates intact and promised to be patient with further interest rate lifts, dropping its guidance that further gradual rate lifts will be required.
The US major financial institution also told it could change the tempo of its balance sheet reduction.
As some financial experts pointed out, Fed policymakers are actually coming to a compromise having reversed their course 180 degrees.
What’s more, so-called quantitative tightening that Fed Chair Jerome Powell is used to mentioning as ‘balance sheet runoff’, isn’t on autopilot any longer.
In fact, the dovish shift in tone to the US major bank’s message suggests a longer pause in rate lifts that in turn diminishes the opportunity cost of holding non-interest bearing yellow metal.
As for other metals, palladium futures managed to tack on due to the fact that forecasts that demand will head north in 2019 as stricter emissions standards ramp up demand for the metal used in catalytic converters. Eventually, this commodity inched by up to 3.24% being worth $1,452.75 an ounce, which appears to be a fresh record maximum.
Combined with with supply-side issues, the market will be in rather a sizeable deficit in 2019 and potential for better-than-anticipated demand from China will have that tightness exacerbated, as some experts stressed.
Similar
Gold fell below $1,700
Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
GOLD: approaching $1,800!
The shining metal breaks above $1,760. How soon the 2012 heights may be beaten?
Popular
Risk-on is back. Market news and trade ideas on July 9
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
GOLD: the era of $1 800
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canadian job data: an attractive release for trading
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.
Choose your payment system
