GOLD
Gold prices accumulated losses in early Thursday trading, extending the negative momentum from the previous session, which saw them drop below the $2,400 level. Traders reacted to the release of the latest FOMC minutes, which revealed that some Fed officials expressed concerns over persistent inflation and raised the possibility of hiking rates. The impact of the news was immediate. Treasury yields increased, and the US dollar gained ground against other major currencies as expectations of a rate cut in September faded. As a result, traders moved to price in November as the more likely timing for the first Fed rate cut, driving higher Treasury yields and a stronger dollar, which caused losses for the non-yielding precious metal.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.