Gold futures are dropping lower early Wednesday, although lower Treasury yields and a slightly lower U.S. Dollar, ahead of the minutes from the July Federal Reserve monetary policy conference that could establish the mood later in the discussion.
At 06:14 GMT, December Comex gold trading price is $1997.40, down $15.70 or -0.78%.
Currently, gold is straddling a critical technical area at $1981.70 to $2007.10 to determine the market’s near-term direction.
U.S. Treasury yields were reduced Wednesday morning as investors anticipated the release of the latest Federal Reserve minutes while closely watching developments on a new coronavirus alleviation program in Washington.
Stimulus Package
U.S. Treasury Secretary Steven Mnuchin, on Tuesday, reviewed Democratic correspondents for what he explained as an aversion to talking about a smaller coronavirus stimulus arrangement. However, Politico said that House Speaker Nancy Pelosi had voiced the possibility of cutting some demands to secure a deal.
On Tuesday, President Donald Trump reported that he had declined further approaching trade talks with Beijing over its feedback to the global coronavirus pandemic, which has now affected more than 5.4 million Americans.
Today’s direction of gold prices will remain to be decided by U.S. Treasury yields and the U.S. Dollar. Both are presumed to be influenced today by the Fed’s message in the minutes from its July monetary policy meeting.
The FOMC’s last conference minutes will be announced at 18:00 GMT, providing an insight into the central bank’s deliberating process as it looks to add to the economy in the wake of the global pandemic.
The majority of analysts agree the Fed is not expected to forecast any new monetary stimulus actions in the minutes. Nonetheless, investors will be closely monitoring for any change to the Fed’s approach to inflation that could be a downside for the dollar. This could trigger dollar-denominated gold higher.
On Wednesday, Nio stock declined after it entered fierce market competition with the debut of…
Robinhood has again become central in another meme stock surge. CEO Vlad Tenev shared that…
On Wednesday, Nio introduced the first offering of its new low-priced Onvo brand, the L60…
On Wednesday, cocoa prices spiked due to a lack of liquidity, with open interest in…
On Tuesday, the US Department of Justice (DOJ) revealed that Boeing had violated its obligations…
On Wednesday, wheat futures spiked as the winter season’s grains entered their late growth stages…
This website uses cookies.