The last few days have been particularly great for metals, especially Gold. Early trading sessions on Friday saw Gold rally, adding to previous gains made on Thursday. Gold bulls are again claiming ground amid the indications of abating monetary policy, according to the recent FOMC meeting.
In terms of performance, Gold futures rallied 0.40% to trade at $1,757. On the flip side, the dollar edged low on Thursday morning after bossing the market for the whole of July. It would be recalled that the dollar registered a 20-year high in July and has remained within that region for quite some time. Other metals, including silver and Palladium, follow in Gold’s footsteps after coming under heavy selling pressure early in the week. Silver is up 0.85% to $19.86 during the early Asia trading session. Similarly, Palladium is up 0.60%.
Meanwhile, the U.S. Gross Domestic Product (GDP) report fell below expectation, falling by 0.9% in the second quarter. This caused investors to switch attention to safe-haven assets like Gold, causing it to rally.
Previously, the U.S. The Federal Reserve increased interest rates by 75 basis points and clarified that it would slow down on its aggressive monetary tightening. Also, the Fed Chairman’s statement following the interest rate hike came in hawkish. The Fed stated categorically that any future interest rate hike would depend on prevailing economic data.
Meeting of the US and Chinese Presidents
Investors look forward to U.S. President Joe Biden’s relationship with his Chinese counterpart, President Xi Jinping, as both presidents plan to have an in-person meeting later this year. The meeting will be the first time both presidents see face to face since Biden took over from Donald Trump. Both presidents spoke over the phone this week, with the bulk of the conversation centered around Beijing’s relationship with Taiwan.