Rising US Dollar Sends Gold Prices Lower
Rising US Dollar Sends Gold Prices Lower
On Wednesday, USD spiked after falling the previous day, but was unable to break out of the recent trading ranges, as traders eyed a meeting of global central bankers this Friday for clues whether the Federal Reserve will hike rates this year.
The U.S. dollar index rose by 20 pips and settled at 94.70.
Gold prices edged down on Wednesday, negatively affected by the USD’s rally and traded below $1,330. From a technical point of view, the precious metal could re-test $1,330 during the course of the day.
Euro failed to manage its gains vs. USD and settled below $1.1280. The single currency could be positively affected by Germany Ifo Business Climate Index, which will be released today
The Pound traded in a narrow trading band amid lack of economic data, while USD settled at $1.3170 vs. GBP. From a technical point of view, Cable could touch $1.33, before returning to $1.30.
On Wednesday, Oil prices extended losses and fell by 2% on an unexpected rise in U.S. crude stockpiles that revived concerns about the oversupply.
Also on Wednesday, the U.S. Energy Information Administration reported that, U.S. crude stockpiles increased by 2.5 million barrels to a total of 523.6 million barrels in the week ending 19th August, while analysts had expected a 500k barrel decline. U.S. crude was negatively affected by such data and traded below $46.50.
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Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
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