Gold Reached It`s Two Week Low
Publish Date : 2019/08/01 - 11:25

Gold plunged to its two-week low on Thursday, with traders now seeing a move towards the $ 1400 challenging price. He added that the pressure came after the Fed cut its 25% interest rate, but it was shown that further interest rate cuts were not guaranteed.

At a news conference after the meeting, US Federal Reserve Chairman Powell described the interest rate cut as a political adjustment, saying the move did not necessarily mean the start of new interest rate cuts, which led to some sharp sales around the non-yielding yellow metal.

Meanwhile, the Fed's hawkish cut triggered a fresh leg of an upsurge in the US Dollar, which extended through the early European session on Thursday and further collaborated towards driving flows away from the dollar-denominated commodity.

But as the china-US trade talks come to an end without a breakthrough, a slight decline in world risk sentiment has extended some support to the precious metal's safe status and may become the only factor that could limit losses.

Moving ahead, Thursday's US economic docket - highlighting the release of ISM manufacturing PMI, will now be looked upon for some short-term trading impetus later during the early North-American session and ahead of Friday's closely watched US monthly jobs report (NFP).

source : Fxstreet

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