Gold futures fell in US session as the dollar index rose for the sixth session in seven sessions from its lowest since July 9, according to the inverse relationship between them following the developments and economic data that followed yesterday on the Chinese economy, the largest consumer of metals worldwide and following developments and economic data that Followed by Monday on US economy, the world’s largest economy and on the verge of disclosing data from the US industrial sector.
Gold futures for December delivery fell 0.38% to currently trade at $ 1,191.70 per ounce compared with the opening at $ 1,196.20 an ounce, with the USD index rising 0.02% to 95.15, showing a rebound From its lowest in three months compared to the opening at 95.13.
On Sunday, we followed the Chinese economy, the second-largest economy and the second largest industrial nation after the United States, released the Industrial and Service Purchasing Managers Index (PMI) by the China Logistics and Procurement Federation (CFLP), which showed a contraction of the industrial sector to 50.8 from 51.3 in August. August, worse than expected at 51.2, and the service sector expanded to 54.1 versus 54.2, against expectations of 54.1.
On the other hand, we have followed the talk of Federal Reserve Bank of Atlanta Chairman and Federal Open Market Committee member Rafael Postek about economic development at the Atlanta Annual Economic Development Conference, just hours ahead of Federal Reserve Governor Jerome Powell’s forecast of employment and inflation expectations at the meeting. Annual meeting of the National Association of Business Economics in Boston.
This came before we saw the final reading of PMI by Markit on America, which showed the stability of the widening at 55.6, unchanged from the previous reading of the September prior to the expectations of September compared to 54.7 in August, on the threshold of disclosure of the reading From the Institute of Industrial Supply, which may reflect a widening contraction to 60.1 versus 61.3 in August.
A reading from the Industrial Supply Institute (ISI) index may show a price contraction of 72.0 versus 72.1 in August, in conjunction with the August construction spending reading, which could reflect a 0.5% growth rate versus 0.1% in July. Ahead of US President Donald Trump’s expected talk about a trade agreement between the United States, Canada and Mexico from Washington, DC.
This comes hours after the expiry of the FOMC meeting on September 25-26 in Washington, in which monetary policy makers at the Federal Reserve raised the federal funds rate for the third time this year by 25 basis points under the leadership of the bank’s governor Fed Chairman Jerome Powell to between 2.00% and 2.25%, which was widely expected by the markets.
The decision came in line with the Federal Reserve’s expectations of growth, inflation and unemployment as well as the future interest rates, which kept the possibility of a fourth rate hike this year and three more next year, plus one increase in 2020. Powell said during the press conference Which followed the meeting that the committee’s decision to press ahead with tightening monetary policy was strongly supported by the pace of economic growth.
Commenting on the Fed’s removal of the word “soft” from the monetary policy statement, Powell noted that “this change does not indicate any possible change in the political course, but is a sign that the policy is in line with our expectations.” Treasury bonds cut through mortgage-backed securities during September are $ 24 and $ 16 billion and the next calendar month will be $ 30 and $ 20 billion.