Gold prices rose on Tuesday to a one-week high on a weaker dollar after US President Donald Trump said he was “not happy” with the Fed to raise interest rates. As of the writing of this article, gold rose XAUUSD 0.42% to $ 1,195.50 an ounce, after touching $ 1,196.20 earlier high since August 14.
Trump reiterated his displeasure at the Federal Reserve’s tightening monetary policy and triggered a large-scale sell-off of the US dollar. In addition, optimism about US-China trade talks was also cited as another counter-trend to the US dollar, and was finally seen as benefiting from dollar-denominated commodities such as gold.
However, a rebound in US Treasuries kept a lid on any huge rise in non-yielding yellow metal. In addition to improving investor appetite for high-risk assets, as demonstrated by the positive sentiment about equity markets, which tends to undermine the demand for safe haven for precious metal, it may increase cooperation to curb any meaningful move.
Going forward, this important release of the FOMC meeting minutes this week and Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Central Bank forum will play a key role in determining the next phase of the trend.
Investors were looking to announce the minutes of the Fed’s August meeting on Wednesday and hold the Bank’s annual policy seminar at Jackson Hole in Wyoming later this week. Markets also focused on a US-China trade meeting this week, but Trump on Monday said he did not expect much progress from talks with Beijing. The results of Sino-US trade could give the precious metals market some volatility during trading hours this week.