Gold Futures Settle Higher On Rate Cut Hopes

Trading 24 juil 2019 Donner votre avis

Gold prices moved higher on Wednesday as the dollar stayed largely weak amid rising expectations that the Federal Reserve will cut interest rate next week to support growth.

Rising geopolitical tensions, weak economic data out of the U.S. and Europe, and hopes of monetary easing by the European Central Bank too prompted investors to seek the safe haven asset.

Gold's uptick was also due to rising prospects of the U.K. exiting the European Union without a deal.

The dollar index, which dropped to a low of 97.55, recovered to 97.81 later on in the day, but was still seen struggling to make any significant move up in positive territory.

Gold futures for August ended up $1.90, or 0.13%, at $1,423.60 an ounce.

On Tuesday, gold futures for August ended down $5.20, or about 0.4%, at $1,421.70 an ounce.

Silver futures for September ended up $0.150, at $16.626 an ounce, while Copper futures for September settled at $2.7120 per pound, gaining $0.0120 for the session.

In geopolitical news, Gulf tensions remain at elevated levels after the American military said the U.S. may have brought down two Iranian drones in the Gulf last week.

Meanwhile, Iranian President Hassan Rouhani said Wednesday that Iran was open to holding talks on its nuclear program but would not surrender under the name of negotiation.

Global growth concerns linger after the IMF lowered its forecast for global growth this year and next, citing trade and Brexit uncertainties.

Many believe that Boris Johnson, who took over as the Primer Minister of the U.K. today, will take a hard line in pushing the country out without an EU pact in hand.

In U.S. economic news today, a report from the Commerce Department showed new homes sales in the U.S. showed a substantial rebound in the month of June. The report said new home sales increased by 0.7% to an annual rate of 646,000 in June, after plunging by 8.2% to a revised rate of 604,000 in May. Economists had expected new home sales to jump by 5.4% in June.


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