Gold prices plunged sharply on Wednesday, ending a two-day string of gains as the U.S. dollar stopped its skid and as commodity investors watched minutes from the Federal Reserve’s July policy meeting, which could provide further insight into the central banker’s perspective for US and global business.
Market participants will also watch for all announcements about new measures that the central bank can implement to inflict economic damage caused by the pandemic. Fed minutes are at 2 a.m. Eastern Time, half an hour after metals settle on Comex.
U.S. lawmakers, meanwhile, also sought to re-establish stagnant talks that could show a smaller coronavirus relief package. Fed policymakers have repeatedly warned of limits to their ability to support the economy and financial markets and have urged Congress to provide more fiscal incentives to extend COVID-19 recovery.
“Financial markets are likely to expect the Fed to be disappointed. The latest fiscal stimulus action seems to be disappearing and that raises the bar for additional support,” Edward Moya, senior market analyst at Oanda, wrote in a note.
Gold has flourished most in an environment of policy with easy money and uncertainty generated by the global viral outbreak.
December gold GCZ20,
GC00,
was $ 42.80, or 2.1%, to settle at $ 1,970.30 per ounce, after a gain of 0.7% for the precious metal in the previous session.
Meanwhile, silver prices are September SIU20,
retreated shed 73.5 cents, or 2.6%, to end at $ 27,340 an ounce after sister metal of gold rose Tuesday.
Movements for metals on the day come as the softness of the dollar after a fresh two-year low on Tuesday somewhat declined. The dollar was up 0.5% at 92,697, as determined by the ICE US Dollar Index DXY,
a measure of the dollar against half a dozen currencies.
In other metal trade, September copper HGU20,
added 4.8 cents, or 1.6%, to settle at $ 3,023 per pound, marking its highest settlement since 2018, according to Dow Jones Market Data. October platinum PLV20,
lost $ 19.10, or 2%, to end at $ 956.30 per ounce, while September palladium PAU20,
forgets $ 49.20, or 2.2%, to settle at $ 2,179.10 per ounce.
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