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Investing.com – Despite the state of accord gold and the dollar witnessed during yesterday’s trading, Tuesday after both rallied strongly, expect markets for today.
However, today’s Wednesday trading brought the new, as the yellow metal extended its gains, breaking a seven-month high, with gains topping $40 in two days.
Markets await the release of the minutes of the last monetary policy meeting in December, looking for further clues on the next step of the US Federal Reserve on the tightening policy initiated last year.
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gold now
Gold futures rallied during these moments in today’s trading within the 0.9% range, reaching levels near $1,863.
On the other hand, spot gold contracts, US dollars, rose more than 1% during today’s trading, gaining over $19 to levels near $1,860 an ounce.
dollar now
The main decline during these trading moments today, Wednesday, in the range of 0.4% to levels near 104.1 points against a basket of major currencies.
While the US yield is still declining, as the 10-year Treasury yield fell to 3.86%, down 0.2 points.
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And the prices?
Yesterday, Tuesday, the price increased by 1.1%, or $19.90, to reach 1846.10 an ounce, and the spot price increased by 0.86%, to record $1839.09l ‘ounce.
At the same time, the dollar index, which monitors the performance of the US currency against the 6 major currencies, rose by 1.1%, reaching 104,671 points.
market situation
“We are seeing a slight supply of gold, but with very little liquidity at this time of year, it seems like the buying is technical rather than primarily driven,” said Matt Simpson, senior market analyst at City Index.
The minutes of the Federal Reserve’s December monetary policy meeting are expected to be released today, Wednesday. The Fed raised interest rates by 50 basis points in December after 4 consecutive hikes of 75 basis points each.
“I suspect the minutes will take as much of a hit as the December Fed meeting, but traders will be looking for confirmation of the lower Fed rate expressed in the mid chart, which could support gold,” Simpson added.
price determinants
Market participants have been keeping tabs on rising coronavirus infections in China, the largest consumer of precious metals, amid fears of a slump in demand.
US jobs data for December, due to be released on Friday, should show the job market remains tight.
On the technical front, spot gold could rise in a range of $1,861 to $1,869 an ounce, according to Reuters technical analyst Wang Tao.
