Gold stocks have seen a hike once again following investors’ keen interest to hear what Federal Reserve has in call for global economy’s fate. Any decision by officials could lead global dominant currency towards a track determining *commodity prices all over the world.
(*Bearish Dollar gave crude cost a boost, while stock futures tipped higher as earnings news spread)
It’s worth noticing that investors all over the financial market do not look for an interest-rate hike but still analysts hopes for Federal Open Market Committee to announce something worth acknowledging/considering – it probably could hint something about the policy-making committee’s expectations for future rate increases, as per prediction for June.
No doubt, an interest rate could be a green signal for global business firms, however, what for those who wish to invest in Gold buy/sell trade? Hiking interest rates certainly could elevate royal metal costs for all those intending to buythe dollar-denominated assets, using various other currencies.
MONDAY: News by Asian stock markets revealed a plunge in futures as investors take a tough call to wait for U.S Federal Reserve and Bank of Japan’s monetary policies – beheld this week.
Last week, the Yen plunged the most in 17 months as speculation intensified regarding Bank of Japan to mightgo for extreme policy by helping banks lend by offering a negative rate on some loans.
Exclusive data obtained from Market Watchers cited (for readers ‘concern):
| The ICE U.S. Dollar Index (DXY) plunged by 0.4% |
INSIGHT: U.S. durable-goods orders rose by 0.8% the last month – bearish to what analysts had hoped.
| June Gold (GCM6) futures to be trading higher at $ 1,243.50/ounce – bullish by $2.70, i.e. a gain worth 0.3%| SPRD Gold Trust (GLD) futures marked bearish imprints by 0.4%. | The Market Vectors Gold Miners (ETF GDX) was also on bear trading – loss worth 0.7%.
Point of consideration here is that the royal yellow Dutch metal had cowered to as much low as $1,232.70/ounce.
As we look in depth Gold’s sister metal, Silver:
| May Silver (SIK6) futures traded 0.1% less to $17.03/ounce – gaining 2 cents |
Point of consideration here is that the royal metal had been marking bearish paw prints worth $16.84 before taking a flight.
As for other metals:
| May copper (HGK6), dropped by 3 cents, i.e. 1.2% to $2.23/pound |
| June palladium (PAM6), lost $11.55, i.e. 1.9%, to $594.05/ounce |
| July platinum (PLN6) dropped by $12.40, i.e. 1.2%, to $1,006.10/ounce |