August’s gold distribution income at the New York Mercantile Exchange Comex division was almost unchanged at $ 1,344.15 a troy ounce of 10:08 ET. Prices have risen by only 5% in the last three weeks only in the signs of the US economy slowdown, and even the largest drop ever in the New York Federal Reserve’s production index can not push the higher prices.
Although the Fed is not expected to change interest rates on its policy decision Wednesday, analysts are widely wary of US central bank chief Jerome Powell to present a better look.
Senior Investment Analyst Barani Krishnan said, “A commodity with a clearer basic viewpoint may now be gold, which seems quite safe to receive a $ 1,400 reversal test this week between expectations of one Fed rate cutbacks. ”
Markets have been steadily increasing bets that the Fed may lower interest rates as early as July in signs of global economic weakness and inflation subdued in the US.
Gold generally benefits from low interest rates that reduce the cost of holding gold bars that are not given. Given that many sovereign bonds in Japan and the euro area are now yielding zero, gold has the unusual advantage of offering a price on many other housing assets. That said, the performance in the 10-year German Bund has risen to three base points today from all low-winters of -0.27%
Geopolitical tensions have also supported safe shelter metal without any sign of a potential de-escalation in trade tensions.
Over the weekend, US trade secretary Wilbur Ross denied the possibility of reaching an agreement between US President Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit of June 28-29. Ross stressed that Trump was “totally happy” to increase the current tariff strategy.
Tensions also showed no signs of cooling in the Middle East. Arriving shortly after US Secretary of State Mike Pompeo accused Iran of being responsible for the attacks on oil tankers last week, Tehran said it would break the internationally accepted limit on the enriched uranium reserves for 10 days, if Europe does not take steps to help alleviate its economic sanctions.
Pompey noted that the US was studying a “full spectrum of options”, including military ones.
In trading other metals, silver futures increased 0.3% to $ 14,845 a troy ounce from 10:09 ET (14:09 GMT).
Palladium revenue traded with 0.5% to $ 1,454.10 an ounce while metal sister platinum lost 1.4% to trade at $ 793.20 an ounce.
In basic metals, copper won 0.4% to $ 2,641 a pound./Investing.com