Gold Price Steady As Greenback Remains Relatively Unchanged

Gold prices were steady on Tuesday, as the U.S. dollar remained largely unchanged ahead of U.S. Federal Reserve Chairman Jerome Powell’s first congressional testimony.
Colin First
Gold Prices

XAUUSD was up 0.1% at $1,241.20 an ounce at 0420 GMT, while U.S. gold futures for August delivery were up 0.1% at $1,241.60 an ounce. The dollar index was steady against major peers on Tuesday, as investors awaited Federal Reserve Chairman Jerome Powell’s first congressional testimony for any clues on the pace of U.S. interest rate rises.

Fed’s Powell takes his upbeat view of the U.S. economy to Capitol Hill on Tuesday, with markets and many of his colleagues expecting two more interest rate increases this year amid a continued economic expansion. U.S. rates tend to boost the dollar, in which the metal it is priced. Looking at current price action and investment trend gold is expected to trade sideways in long term. Gold and Silver investment in the majority is influenced by high volatility from the US, China, and some Asian countries. The ongoing trade war has soured investor sentiment in China with local currency value seeing a decline.

Sustained trade conflicts following U.S. tariff actions threaten to derail the economic recovery and depress medium-term growth prospects, the International Monetary Fund warned on Monday. China is slowing down, there will be consequences to global commodity consumption and that’s going to drag gold down as well.

Similarly, Silver which is highly influenced by Asian markets is currently at a standstill in $15 handle as US Greenback has a positive outlook in long-term with two rate hikes priced in within this year which makes dollar-denominated Silver a costly investment with no interest gains thereby appearing less attractive to investors. XAGUSD pair is currently trading at $15.87 seeing 0.36% increase in value as Dollar has been weaker the last few sessions which have resulted in short-term bids but seeing limited upside momentum.

Gold Hourly

Oil prices slipped earlier on Monday dropping about $3 a barrel, as concerns about supply disruptions eased and Libyan ports reopened. U.S. Treasury Secretary Steve Mnuchin said some oil buyers could get waivers to continue buying Iranian supplies despite American sanctions on the Middle Eastern country.

Mnuchin told the reporters the Trump administration wants to avoid roiling global oil markets as it seeks to pressure Iran to make concessions on its nuclear program, ballistic missile tests and its role in regional conflicts. President Donald Trump withdrew the United States from the 2015 Iran nuclear deal and restored sanctions on Tehran in May. U.S. West Texas Intermediate crude oil prices ended Monday’s session down $2.95, or 4.2% at $68.06. WTIUSD has fallen for two weeks in a row, dropping from a 3½-year high above $75 a barrel and is currently trading at $68.20 with 0.24% increase in value.

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