10 Oct 2013
Metals on a consolidation mode, greenback strikes back
FXstreet.com (Athens) – Gold is falling slightly today –after the yesterday’s sharp fall -as Yellen’s nomination on the top chair of the top bank all over the globe alongside with the FOMC minutes release, spurred positive momentum among market participants on the US “jitters.”
Gold loses its shining “glitter” as investors remove from safe haven assets
The dollar climbed further off a recent eight-month low against major currencies on Wednesday after the minutes of the Federal Reserve's September meeting revealed the decision not to slow stimulus was a "close call." Elaborating on, the dollar index rose 0.4 percent to 80.362, edging away from the 79.627 trough hit last Thursday, a low not seen since early February. Today the greenback is still moving upwards with solid support overnight coming on the back of the latest Fed minutes, together with the growing expectation that a deal will be reached on the US debt ceiling. On the other side, gold is trading lower below $1.300/ounce as greenback gets substantial support. Yesterday, gold fell nearly 1% on Wednesday, as the dollar rose while investors digested news that Federal Reserve Vice Chair Janet Yellen will be nominated as the next chief of the U.S. central bank. Furthermore, global oil prices sank on Wednesday, as the largest weekly buildup of U.S. crude stocks in a year weighed further on a market already concerned that Washington's budget impasse would curb demand in the world's biggest oil consumer. More precisely, U.S. crude inventories rose by 6.8 million barrels to 370.5 million last week, the EIA data showed. After yesterday’s sharp losses (NYMEX crude oil, -1.96%), today oil prices are moving slightly higher mostly on a consolidation trend shift.
Gold loses its shining “glitter” as investors remove from safe haven assets
The dollar climbed further off a recent eight-month low against major currencies on Wednesday after the minutes of the Federal Reserve's September meeting revealed the decision not to slow stimulus was a "close call." Elaborating on, the dollar index rose 0.4 percent to 80.362, edging away from the 79.627 trough hit last Thursday, a low not seen since early February. Today the greenback is still moving upwards with solid support overnight coming on the back of the latest Fed minutes, together with the growing expectation that a deal will be reached on the US debt ceiling. On the other side, gold is trading lower below $1.300/ounce as greenback gets substantial support. Yesterday, gold fell nearly 1% on Wednesday, as the dollar rose while investors digested news that Federal Reserve Vice Chair Janet Yellen will be nominated as the next chief of the U.S. central bank. Furthermore, global oil prices sank on Wednesday, as the largest weekly buildup of U.S. crude stocks in a year weighed further on a market already concerned that Washington's budget impasse would curb demand in the world's biggest oil consumer. More precisely, U.S. crude inventories rose by 6.8 million barrels to 370.5 million last week, the EIA data showed. After yesterday’s sharp losses (NYMEX crude oil, -1.96%), today oil prices are moving slightly higher mostly on a consolidation trend shift.