Gold slides as a waning interest rate cut bet lifts Dollar


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Gold slides as a waning interest rate cut bet lifts Dollar

On Tuesday, the 9th of July 2019, Gold prices had experienced another day of heavy battering, while American dollar had been hovering near its multi-week highs, as investors’ bet of an aggressive rate cut policy of US Federal Reserve had been fading away following reveal of a bunch of maverick employment figures last week, alleviating some concerns related to global slowdown.

While this report was being prepared, during the early morning US trading hours, spot gold future prices were down by 0.3 percent to $1,391.65 an ounce, while the dollar index measured against a bunch of six major currencies on an average was residing closer to its multi-weeks high at 97.39.

Meanwhile, money markets were still expecting an interest rate cut of as little as 25-point basis, but large US lenders including Morgan Stanley and Citibank had warned investors not to be biased on a rate-cut bet as early as this month.

Aside from gold other safe-haven assets such as Japanese Yen had been falling sharply, pointing towards an increase of investors’ appetite for riskier assets, while another safe-have currency Swiss Franc orchestrated mixed results following reveal of its unemployment rate, which fell to a record 2.0 percent from 2.1 percent a month earlier.

During the preparation of the report, Japanese Yen had been well on course to post its fourth consecutive sessions of losses against American dollar and fell 0.10 percent so far in today’s (July 9th) trading, while Swiss Franc gained 0.10 percent following reveal of its upbeat employment figures.