Gold Price Declines despite Weak US Greenback

Gold prices steady on Monday morning near their highest level since July 17 as the dollar eased to its lowest in nearly two weeks after U.S. President Donald Trump criticized the Federal Reserve’s interest rate tightening policy.
Colin First
Gold and USD

As the trading session progressed, the US dollar’s weakness had less impact on precious metals which resulted in Gold price seeing a steady decline across Asian market hours. Spot Gold XAUUSD is currently trading at $1228.10 with 0.10% decrease in value. U.S. gold futures for August delivery were 0.1 percent higher at $1,232.10 an ounce.

Meanwhile the dollar index, which measures the greenback against a basket of six major currencies, was down 0.2 percent at 94.305. It fell to its weakest since July 11 earlier in the session. Trump on Friday reinforced his criticism of the Federal Reserve’s policy on raising interest rates, saying it takes away from the United States’ ‘big competitive edge’ and could hurt the U.S. economy.

Over the weekend from Trump changed the environment somewhat, with the apparent push now to really weaken the U.S. dollar. The dollar has been a significant headwind for gold over the past month or so, so it opens up the possibility that we will not see that continued strength in the U.S. dollar. However, the short-term outlook remains in favor of Strong US Greenback which has resulted in precious metals losing their gains made last Friday. While Gold has significant downward movement, silver remains less affected as it has already reached multi-month lows. Spot Silver XAGUSD pair is trading flat today at $15.50 with 0.02% decrease in value.

Gold Hourly

Crude Oil is trading flat on Monday over remarks from the G20 meet in Buenos Aires. Finance ministers and central bank governors from the world’s 20 biggest economies ended the meeting over the weekend calling for more dialogue to prevent trade and geopolitical tensions from hurting growth. Economic and oil demand growth are closely correlated as expanding economies support fuel consumption for trade and travel, as well as for automobiles.

Worries over the impact of a trade war have balanced concerns over production losses and lack of supply at a time of rising demand. U.S. energy companies last week cut the number of oil rigs by the most since March following recent declines in oil prices. Drillers cut five oil rigs in the week to July 20, bringing the count down to 858, Baker Hughes energy services firm said on Friday.

The U.S. rig count, an early indicator of future output, is higher than a year ago when 764 rigs were active as energy companies have been ramping up production in anticipation of higher prices in 2018 than previous years. The price action stabilized on Monday as worries over production losses were outweighed by concerns that trade disputes would reduce economic growth and hit global energy demand. WTIUSD pair is currently trading at $68.29 per barrel.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US