Gold prices fell on Wednesday as optimism over potential US-China trade talks dampened demand for safe-haven assets, while investors prepared for a Federal Reserve policy meeting later in the day. Spot gold fell 1.2% to $3,388.67 an ounce by 0225 GMT. The metal had gained nearly 3% in the previous session. US gold futures fell 0.7% to $3,397.70. "Gold appears to be pulling back amid the broad risk-on movement across the market ... this is a pro-cyclical configuration that may echo optimism amid hints that the US and China have begun real trade negotiations," said Ilya Spivak, global head...
The dollar was steady on Wednesday before a Federal Reserve meeting to determine policy for an uncertain economy and as major investors in Asia continued to cash out of U.S. assets. News that the United States and China will hold talks on Saturday eased concerns about a trade war that has shaken investor confidence in the dollar and U.S. markets. Fed Chair Jerome Powell is expected to say more data is needed before deciding on the U.S. central bank's next move. There appears to be a slowdown in dollar selling since last week, which has been driven by investors globally, particularly in...
The Japanese Yen (JPY) weakened across the board during the Asian session on Wednesday (07/05) as optimism over the US-China trade talks was seen denting demand for traditional safe-haven assets. This comes on top of uncertainty over the likely pace and timing of future interest rate hikes by the Bank of Japan (JPY), which was seen weighing on the JPY. This, along with a modest uptick in the US Dollar (USD), helped the USD/JPY pair to gain some positive traction and snap a three-day losing streak to a near one-week low touched on Tuesday. However, investors seem convinced that the BoJ could...