The price of gold losing 1% came under pressure after fed decision US
The price of gold was lower Thursday, under pressure from a strengthening dollar and fed’s comments Wednesday, which has shattered the hopes of investors for a rate cut in the near future.
As a result, the dollar index rose to its highest level 97,85 in the morning session, which was more than approximately 0.2% compared to the previous close.
The cost of the June gold futures on the London stock exchange fell 12,20$, or 1%, to 1272,00$ per ounce, the lowest level since December 24, 2018.
On Wednesday, the Federal reserve left interest rates unchanged and reduced concerns about recent soft inflation, expecting that in the coming months, monetary policy is unlikely to change.
In economic news, published by the US Commerce Department said that new orders for manufactured goods in the U.S. rose in March more than expected, with a significant recovery in orders for transportation equipment.
The report said that factory orders rose by 1.9% over the month after falling 0.3% in February. Economists had expected the index to rise 1.5%, compared with a fall of 0.5% reported in the previous month.
The labor Department report showed much larger than expected, the growth of labor productivity by 3.6% in the first quarter. Performance in the fourth quarter rose 1.3% . Economists had expected the index to increase by 2.2% compared with growth of 1.9% reported in the previous quarter.
Report of the U.S. Department of labor showed that first time applications for unemployment benefits in the U.S. amounted to 230 000, unchanged compared with the level last week 230 000. Economists, in turn, had expected a decline of up to 215 000.
Today on Friday the publication of the main report Nonfarm Payrolls and if the data is worse than expected, the us currency could come under pressure thereby giving the gold course new impetus to strengthen.
In the current situation the price of gold still has potential to grow in the second half of may quotations of precious metal will likely attempt to implement it.