Today’s Gold Rate: Prices Steady while risks takes a setback
On Thursday, gold prices steady while obscure taste on riskier assets offers a few support on safe-haven metal. Meanwhile solid dollar limit gains towards European Central Bank’s (ECB) policy meeting with a deadline within the day.
Moreover, spot gold stays firm amounting to $1,286.49 an ounce during 1341 GMT. Subsequently, the United States gold futures decline at about 0.1 percent amounting to $1,287.
Elsewhere, tracking the greenback against major currencies, the dollar index holds close to it more than two-week high. That of which is posted earlier on the week.
The safe-haven assets
Meanwhile, Michael McCarthy, chief market strategist at CMC Markets comments on strong dollar’s limiting gains. According to McCarthy, “There is some support for safe-haven assets. Equities in Asia have given up the gains, and that reflects the pressure we are seeing on risk assets.”
Subsequently, On Thursday, Asian shares ease with caution preponderating. At the same time, investors wait on some resolution on the Sino-U.S. trade resolution and negotiations.
On Wednesday, United States President Donald Trump says that trade talks with China are progressing well. Additionally, it was predicted to either be a good deal or no deal at all in between the two largest economies worldwide.
McCarthy said, “The next potential event for gold is the ECB meeting, and if we get a dovish signal we could see gold test that $1,300 level again. Any addressing of the issues around long-term support programs for bank funding could support gold.”
The European Central Bank
Meanwhile, the ECB expects to reach growth forecast. In other words, it is likely to provide its strongest signal yet. And that’ll fresh stimulus coming in the form of more cheap loans.
Organization for Economic Co-Operation and Development
Elsewhere, the Organization for Economic Co-Operation and Development again cuts forecast for the global economy in 2019 and 2020. At the same time, it warns that trade disputes and uncertainty on Brexit. And that it might hit world commerce and business and its rapid concerns for global growth.
Furthermore, Edward Meir, INTL FCStone analyst said in a note, “It seems that practically all major global economies are experiencing varying degrees of slowdown and at this stage, we seem to be no closer to bottoming out.” And he added that it “should be constructive for gold.”
According to Wang Tao, looking at the technical front, gold could keep moving up at about $1,283 an ounce for one or two days. That before resuming to its downtrends.
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