Gold (XAU/USD) tumbles nearly 2% on Friday, yet it has recovered after reaching a daily low of $4,032 on growing speculation that the Federal Reserve (Fed) might pause its easing cycle as most officials struck a hawkish message.
Bullion prices fell sharply during the day, but at the time of writing, XAU/USD trades beneath $4,100, down 1.72%.
#Gold #Silver #Reports December 22, 2017 Buy Gold Every Dips and Relaxxxx #Gold Above $1273 only Blast 🔥 Blast 💥💥 Target $1284—$1288—$1292 #NealBhaiReports @Neal_Bhai The #Real #Commodity #Guru
— Gold Silver Reports (@goldsilverrepor) December 22, 2017
Above $1273 Target $1284—$1292
Money markets trimmed their bets for the December meeting from 72% a week ago to about a 50% chance, with most officials worried about inflation despite acknowledging the softness in the labor market.
The Kansas City Fed’s Jeffrey Schmid said, “inflation is too hot,” and added that policy is where it should be. In the last meeting, he was one of the two dissenters with Fed Governor Stephen Miran eyeing 50 bps of cuts, while Schmid opted to hold rates unchanged.
Even though the largest government shutdown may cause economic data to flow, the Bureau of Labor Statistics (BLS) has not released a statement with tentative dates of data releases. On its website, it reads that they “will announce revised news release dates on this page as they become available.”
Traders remain hopeful that fresh data will indicate that further easing is needed due to the deterioration of the US economy.
As of writing, US Treasury yields are edging up, while the Greenback trims some of its Thursday’s losses that pushed the US Dollar Index (DXY) far from 100.00, reaching a weekly low of 98.99.
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