Spot Gold Prices Inch Up as Traders Focus on Fed | Wibest

Egyptians put aside jewelry and buy coins and gold bars

Spot gold prices are reaching year record levels in today’s trading as the market braces itself for the Fed’s rate cut. Other safe haven assets inch up just a few hours before the prospects of the first Fed rate cut in over ten years.

The XAU/USD exchange pair edges 0.16 percent or 2.29 points, it is currently trading at 1,429.80 US dollars. The Gold spot US dollar’s previous close is 1,426.91 US dollar. It has reached ranges between 1,422.40 US dollars to 1,429.13 US dollars.

However, spot gold prices were held from further gaining as some analysts suspect that the Fed might not do too much to ease after a quarter-point reduction.

Some experts are forecasting a follow-up quarter-point reduction to happen in September, with a 50% probability of a third rate cut in by the end of 2019.

Meanwhile, other traders are worried that the US Federal Reserve might be as dovish which could be a downturn for the precious metal and other assets in the long run.

The Fed’s final decision has a probability to overshadow other policy meeting results expected this week. Both the Bank of England and the Bank of Japan are anticipated to hold interest rates.

Spot gold prices are weighed by the probable effects of the major banks’ decision and the possible direction of the highly volatile metal.

Last week, the European Central Bank’s decision gave the BoJ space against the shift of other major banks to a more dovish stance.

The BoJ is expected to back up its previous commitments to keep interest rates below record levels.

At the same time, the BoE is anticipated to offer assessments to the slowly declining British economy. British traders are waiting for a response from the BoE in case of a harsh Brexit scenario.

Other Worries

Wibest – Spot gold prices: Gold bars stacked up top of a chart.

Traders are waiting for significant progress from the ongoing trade negotiation between representatives from the US and China. The long saga of the process could be very beneficial for the precious yellow metal’s demand in the future.

Spot gold prices benefited from the trade disputes because of its safe haven appeal. However, some XAU traders are worried about the precious metal as some officials have geared towards resolving conflicts.

Trade disputes between the United States and other countries, mainly China, have been the reason for the slowing global economic outlook. Japan warned traders about its forecast for this fiscal year.

More on the XAU Market

Spot gold prices did not only rise against the US dollar; it also gained on Asian and European trading sessions.

The XAU/EUR exchange pair inched slightly up 0.04 percent or 0.55 points, presently trading at 1,280.49 euros. The XAU/GBP edges up 1,171.24 pounds, gaining 1.06 percent or 12.32 points.

Meanwhile in the Asian market, gold gained against the Japanese yen. The XAU/JPY rose 0.42 percent or 663.91 points, trading at 154,902.92 Japanese yen.

The XAU/SGD climbed up 0.45 percent or 8.69 points, selling at 1,955.88 Singaporean dollars. And the XAU/CNY edged 9,824.04 Chinese yuan, gaining 0.37 percent or 36.56 points.

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