Trading news

XAU/USD: Fed does not deny the possibility of a rate hike in June _08/04/2016

Technical analysis and trading recommendations - https://fxpcm.com/fx/xauusd-fed-does-not-deny-possibility-rate-hike-june-08042016

Yesterday's speech of Fed D.Yellen at a meeting in New York with the participation of former presidents of the Fed was the reason for today's decline in the gold price quotes.

During his speech D.Yellen gave upbeat assessment of the US economy and confirmed that the next step will be the Fed raising interest rates, although the process should be gradual.

This morning, Fed President Kansas City, George, also said that the state of the labor market and other macroeconomic indicators in the US remain strong and delaying rate hikes creates the risk of formation of "bubbles".

On Monday the Federal Reserve Bank of Boston President Eric Rosengren said that "it is reasonable to resume the gradual rise in interest rates earlier than expected in the futures markets."

According to most market participants, in June, the Fed may go for another rate hike in the United States.

And if so, then the price of gold is under pressure before that date if the world political arena or in the financial markets will not happen unforeseen negative events.

For gold, which does not bring interest income and dividends, favorable low interest rates. In the context of the interest rate increase investment attractiveness of gold is reduced in favor of the dollar, because the cost of borrowing for the purchase of gold and its storage is growing.

Friday, 08 Apr, 2016 / 1:34

Note: Company News is a promotional service of the Directory and the content isn't created by Finance Magnates.

Source : http://fxpcm.com/fx/xauusd-fed-does-not-deny-possibility-rate-hike-june-08042016

Trading news

 

Equities Turn Slightly Weaker Near The Top

Equity markets were seen trading rather flat for the third consecutive day. [...]

Posted on Friday, 24 Jan, 2020 / 2:48 under

Euro slips after ECB; stocks stage another comeback

  Euro/dollar breaks lower as ECB is a touch more dovish than [...]

Posted on Friday, 24 Jan, 2020 / 10:18 under

Coronavirus Stays in Spotlight; EUR Slides on ECB, EZ and UK PMIs in Focus

Most major EU indices traded in the red for another day, and while the US ones [...]

Posted on Friday, 24 Jan, 2020 / 8:47 under