Gold prices held steady in holiday-thinned trade as markets digested the Federal Reserve meeting results and the Middle East conflict. Israel and Iran continued to trade barbs, with Trump saying he would decide on a US strike on Iran "within two weeks." The safe-haven metal traded in a tight range amid lower volumes, but underlying risks remain real, says Tammy Da Costa at FXStreet. Geopolitical tensions remain the main upside driver for gold, although it faces pressure from renewed USD strength after the Fed update, she writes. Powell's cautious tone suggests monetary policy may remain...
The Australian dollar (AUD) retraced its recent decline on Friday (6/20). The AUD/USD pair remained firm after the release of the interest rate decision from China. However, the pair's gains could be limited due to weaker risk sentiment amid rising Middle East tensions. The People's Bank of China (PBOC) decided to leave the Loan Prime Rate (LPR) unchanged on Friday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively. US intelligence agencies believe that Iran has not yet decided whether to pursue nuclear weapons, despite having developed a large stockpile of enriched...
The US Dollar Index (DXY), which measures the US Dollar (USD) against a basket of six major currencies, extended its decline for the second straight day and traded lower around 98.70 at the time of writing. Traders are likely to gauge the Fed Monetary Policy Report, which is scheduled to be released on Friday. The Federal Reserve Board will submit a report to Congress containing a discussion of "the conduct of monetary policy and economic developments and prospects for the future." The US dollar may have strengthened again due to rising safe-haven demand, driven by growing concerns over...