International gold price/dollar impact, MT4.MT5 news

On Tuesday (July 5th), the international gold price was stable. Although it was boosted by the worrying global economic outlook, the high dollar operation suppressed the increase in the gold price. Gold prices are still under downward pressure as major central banks around the world raise interest rates. Gold prices are likely to remain sideways ahead of the release of the minutes of the Fed's June meeting.

 

 

 

At 15:19 Beijing time, spot gold rose 0.01% to US$1,807.64 per ounce; the main COMEX gold futures contract rose 0.36% to US$1,808.0 per ounce; the US dollar index rose 0.19% to 105.392.

 

 

 

 

 

U.S. markets resumed trading after the Independence Day holiday, with the yield on the benchmark U.S. 10-year Treasury note recovering slightly from a one-month low hit on Friday, but still below 3%. Still, the U.S. dollar index hovered near a two-year high, continuing to dent demand for dollar-denominated gold from buyers holding other currencies.

 

 

 

Jeffrey Halley, senior analyst at OANDA, said: "Overall, gold price action remains flat, and despite the continuous lowering of daily candle highs in the past month, the market's short-selling power is still weak." Halley added that the gold price correction cannot be Avoided, but broadly lower U.S. yields appear to be delaying the process.

 

 

 

Fears of a global recession have recently taken new cues from Europe. Italy has declared a state of emergency due to the worst drought in 70 years. In addition, energy companies are struggling to pay gas prices and Germany is signaling economic hardship as the Russian-Ukrainian conflict continues.

 

 

 

The minutes of the Fed's June meeting will be released at 2:00 Beijing time on Thursday (July 6). Until then, gold prices are likely to trade sideways. Fed policymakers' detailed views on U.S. economic indicators, particularly inflation and growth forecasts, will support market participants in adjusting their positions in underlying assets.

 

 

 

Over the past few months, major central banks around the world have raised interest rates in an attempt to curb runaway inflation, which has weighed on gold prices. But during economic crises, such as recessions, gold is seen as a safe store of value.

 

 

 

In addition to the minutes of the Fed meeting this week, the US non-farm payrolls data for June to be released later is also of great significance. According to market consensus, the U.S. economy is expected to add 270,000 jobs in June, down from a previously reported increase of 390,000.

 

 

 

Foreign media quoted government sources as saying that India imported 49 tons of gold in June, about three times the same period last year; the value of gold imports in June soared to $2.61 billion from $969 million in the same period last year. A sharp correction in gold prices led to a surge in demand in India.