Gas factory blast in China's Henan province kills two, seriously injured 18: State media    Blast at Kabul University kills eight, injures 33    After appointing new female judge, will Egypt see more women in courts?    Egypt's PM follows up implementation of Luxor's Corniche development project    Iran dismisses Trump report that US Navy downed "provocative" drone    Egypt's PM holds talks with UNIDO representative on developing industry    Egypt tells citizens that Saudi e-visa not meant for hajj    Rondon links up with Benitez at China's Dalian Yifang    Eriksen trains alone on Spurs pre-season tour    Arsenal's Emery talks up leadership role for Holding amid Koscielny doubt    Algerian team came to Cairo to win AFCON title: Djamel Belmadi    Egypt, Uzbekistan study establishing pharmaceutical plant    Nexign, Giza Systems agree to accelerate African telcos' digital transformation    Maintaining or starting exercise in middle age means longer life    Unbowed, U.S Trump intensifies attacks on 4 Democratic congresswomen    From Iraq to Yemen, drones raise U.S. alarm over Iranian plans    Air-to-air missile seized in Italy was sold 25 years ago: Qatar    NBE's mortgage finance portfolio exceeds EGP 7bn end-June    Belgium's Port of Antwerp to develop bunkering activity in Egypt    Sudan's military, opposition sign 1st part of power-sharing deal    Peace with Egypt must be made: Turkey's main opposition leader    King Tut's golden coffin undergoes first restoration since 1922 discovery    Changing dominant narrative of women on stage    Crude futures firm as U.S. stockpiles of oil products gain    IMF to hand Egypt's final tranche of $12bn July 24 – PM    Mainland Chinese markets fall amid renewed threat to trade    Explorations of music, sound, architecture of Islamic Cairo and everyday life    Farewell to Italy's best-loved writer Andrea Camilleri    Total of 59,455 expats in Egypt have undergone virus C screening    Parliament Speaker announces end of fourth legislative term    Renovation of Egyptian Museum to include installing new lighting, display systems    Kenya eyes partnership with Egypt's energy sector: Minister    Egypt's parliament starts new NGO law discussion    Egypt's parliament Oks new NGO law    Egypt's parliament's 5th convocation sessions to be aired live: Parliament speaker    Egypt's parliament approves new NGO law    4th convocation of parliament concluded    Cairo hosts 6th meeting of Egyptian-Sudanese military committee    Egypt prosecution releases transgender woman detained on terrorism related charges    Egypt inaugurates museum to honor late novelist Naguib Mahfouz    Egypt to sue following sale of $5.97mn Pharaoh Tutankhamun statue    Bookmakers expects Egypt's Mo Salah might miss the year's Ballon D'or award    Fired MP detained pending investigations over corruption charges    Egypt arrests founder of pro-Mubarak Facebook page – source    Egypt sees national population growth rate to halve before 2052    AFCON quarter-finals: Desert Warriors face Ivorian Elephants in early final    Orange Egypt removes Warda from ad campaign after harassment case    Hassan Shehata slams Egyptian team, EFA following AFCON exit    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Gold falls over 1% as Fed dashes imminent rate-cut hopes
Published in Amwal Al Ghad on 26 - 06 - 2019

Gold fell more than 1% on Wednesday, moving away from a six-year peak hit on Tuesday, as U.S. Federal Reserve officials played down expectations of aggressive rate cuts, while investors locked in profits following a strong rally.
Spot gold was down 1.2% at $1,405.60 per ounce as of 0339 GMT, heading for its first decline in seven sessions.
Gold prices hit their highest level since May 14, 2013 at $1,438.63 in the previous session.
U.S. gold futures fell 0.4% to $1,413.30 an ounce.
"The combination of length that was built-up in the market over the short-term, coupled with Fed coming in and shaking the trees last night has really flushed out a lot of the weaker longs in the market," said Stephen Innes, managing partner at SPI Asset Management.
On Tuesday, U.S. Fed Chairman Jerome Powell asserted the central bank's independence, stating that it is "insulated from short-term political pressures," pushing back against U.S. President Donald Trump's demand for a significant rate cut.
While this hosed down expectations for a half-percentage-point cut at the Fed's July meeting, investors are still expecting at least a quarter percentage point reduction.
Separately, St. Louis Fed President James Bullard told Bloomberg Television he does not think the U.S. economy is dire enough to warrant a 50-basis-point cut in July.
"Gold has had a strong ‘melt up' over the last month. So some short-term profit taking is to be expected," said Heng Koon How, head of markets strategy at Singapore's United Overseas Bank.
Meanwhile, hurting bullion appeal, the dollar index rose 0.2% on Wednesday moving away from multi-month lows.
The United States hopes to re-launch trade talks with Beijing after Trump and Chinese President Xi Jinping meet in Japan during the G20 summit on Saturday.
"Not so big buying coming ahead of the weekend trade talks, gold could trade below $1,400 convincingly if things pretty much improve coming out of G20," Innes from SPI Asset Management said.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.3% to 799.61 tonnes on Tuesday from 801.96 tonnes on Monday.
Spot gold may test a support at $1,404 per ounce, a break below could cause a loss to $1,387, according to Reuters technicals analyst Wang Tao.
Among other precious metals, silver fell 1.1% to $15.20 per ounce and palladium dipped 0.2% to $1,525.44.
Platinum lost 0.5% to $801.62 per ounce.
Source: Reuters


Clic here to read the story from its source.