Gold inter-markets: looking forward to Fed minutes to break through three-month tops

Haresh Menghani FXStreet

Having posted a session low near $1232 region, gold regained traction and touched a fresh session peak level of $1238 during early NA session.

A mild retracement in the US equity indices futures, which tends to benefit traditional safe-haven assets, has been a key factor of the metal's latest leg of up-move on Monday. Moreover, the political uncertainty in Europe, ahead of the crucial French Presidential election, has also been supportive of the metal's investment appeal.

Meanwhile, a range-bound price action around the US treasury bond yields, and the key US Dollar Index amid thin market liquidity conditions in wake of a bank holiday in the US, has failed to provide any impetus and broader market risk-sentiment remains an exclusive driver of the metal's move on the first trading day of the week.

Looking at the broader picture, the precious metal has been trading in the vicinity of three-month peaks touched during early Feb. as investors remained skeptic over the US President Donald Trump's pro-economic policies.

Furthermore, market participants also preferred to wait of the sideline ahead of this week's key event risk - FOMIC meeting minutes on Wednesday. The Fed minutes would be looked upon for fresh fresh insight over the possibilities and timing of the next Fed rate-hike action, eventually provide fresh impetus for the non-yielding yellow metal's near-term trajectory.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.