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Adesina Olumide

Gold prices on Friday retreated from its intraday high at Asia’s trading session on Friday as the US dollar remained relatively stable amid sell-offs recorded in European equities.

At the time this report was written gold futures prices are trading at $1953 and has ranged between $1,944.35 – $1,957.05/ounce price levels at London’s trading session.

Gold prices had earlier rallied higher, as the European Central Bank most recent meeting provided little to trigger a bullish run in equity markets. After comments by ECB President Christine Lagarde that were judged as hawkish for the Euro

In addition, all the major American Indexes closed red on Thursday as the Nasdaq Composite lost 1.99%, to 10,919.59 points, S&P 500 plunged by 1.76%, to close at 3,339.19 points and the Dow Jones Index dropped about 1.45%, to 27,534.58 points,

Gold traders now seem to be taking a break of late, with interest on the yellow metal fading; the precious metal looks to have found the bottom, around the $1935-$1945 as in the case of gold futures amid prevailing macros showing global stocks might suffer more selloffs in the coming days.

Although global investors had increased their buying pressures on the precious metal in the past few weeks triggered by the U.S Federal Reserve latest monetary strategy, affirming expectations that interest rates will stay low in the long haul, Gold traders are however wary in the mid-term on how much of the new U.S Fed Reserve strategy will find its way into September FOMC’s 15-16; thereby leading the prices to range arbitrarily at this week’s trading session..

So, the September FOMC’s 15-16 post-meeting statement is important for traders in understanding the Monetary mid-term strategy on interest rates and inflation.

However, it remains most unlikely to see the price of the precious metal shoot above the $2,000/ounce price level, before the all-important meeting next week, as price action shows the bears capping the upward movement of gold.

For a look at all of today’s economic events, check out our economic calendar.

 

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