Gold Strengthens as Dollar Falls, Korea and Fed Rate Worries Persist

Gold Strengthens as Dollar Falls, Korea and Fed Rate Worries Persist

171
0
SHARE

The Japanese currency has made a sharp jump in its exchange rate against the basket of currencies after Monday the North Korean Foreign Minister accused the United States of war, which allowed its state to take action in defense, including the withdrawal of US aircraft. As Japan is the largest creditor country, traders are assuming that in times of crisis, Japanese investors will withdraw their assets, which would raise the yen. Others, however, wonder whether the Japanese shares would be positively appreciated during in Asia.

The dollar stood at about 111.75 yen, while one euro was worth 132.46 yen. The Swiss franc, another popular currency of currency, also recorded increases, rising by 0.3% at night to 0.9663 francs per dollar.

The dollar recorded declines in similar geopolitical situations, but it seems that the most important factor that is affecting the price at the moment is the forthcoming interest rate decision. Green money remained at stable levels against the basket of currencies, the dollar index remained close to the 3-week peak at 92.72 points reached on Monday.

The single currency recorded a slight rise of 0.1% to 1.1856 dollars, but is still near the bottom reached after the German election. The currency was further pressed by Mario Draghi’s statement in which he stated that currency volatility is also a cause for concern and needs monitoring and control. The banker unambiguously pointed out that the economy needed incentives and their premature withdrawal would make the whole program worthless. Hopes for a recent withdrawal of incentives were positively perceived by the markets. Thanks to them, the 2-year peak of the euro against the dollar was reached at 1.2092 on 8 September.

Gold began the early hours of today with a fall, but is still close to the levels of the previous session when the spot price rises by more than a percentage, thanks to geopolitical tension. Spot price recorded its biggest daily gain for the past two weeks, and in the early hours of today gold was traded at $ 1 308.9 a troy ounce. December futures rose 0.1 percent to $ 1,312.60. The noble metal was also aided by the statement by the influential member of the Fed, Neel Kashkari, known for his reserved position on interest rate increases. He said on Monday that inflation figures are weak and do not justify a rise in interest rates in December.

SHARE
Previous articleNew robot may be the first to survive the hostile conditions of Venus
Next articleNike is losing sales in its home market
I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.

NO COMMENTS

LEAVE A REPLY