Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By BullionVault.com (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Gold Prices Rise 3rd Day as US Debt Ceiling 'Blocks Fed Rate Hikes', Dollar Falls

Tuesday, July 18, 2017 4:58

% of readers think this story is Fact. Add your two cents.

Adrian Ash is head of research at BullionVault, the world-leading gold trading & ownership service online…

GOLD PRICES rose sharply for the third session running in London on Tuesday, gaining as world stock markets fell, commodities rose, and interest rates on major government bonds retreated to new lows for July.

Silver stalled at $16.14, unchanged from Monday’s jump, while platinum gave back $10 per ounce from yesterday’s spike to 1-month highs at $934.50 per ounce.

Peaking above $1238, gold priced in US Dollars recovered almost the last of this month’s earlier 3% loss, driven by “technical follow-up buying” after breaking above the “important” 200-day moving average according to a commodities note from German bank Commerzbank.

“The weak US Dollar is also playing its part – it has depreciated to a 14-month low against the Euro.”

Looking at US interest rates, “[Last week's] unexpectedly dovish tone from Fed Chair [Janet Yellen] and weaker than expected CPI [inflation] data raised questions on the Fed’s ability to stay its course,” says a note from Canadian brokerage T.D.Securities.

The market’s previously “hawkish interpretation of the June [Fed] meeting statement and resultant slide in gold close to $1200 appeared a little incongruous to us,” agrees precious metals strategist Tom Kendall at Chinese-owned investment and bullion clearing bank ICBC Standard.

“In addition, the debt ceiling will start to dominate headlines as we move through the northern hemisphere summer,” he adds, predicting that the 2017 discussions “will not be as disruptive as 2011″ – when Congress’ delay saw ratings agency S&P downgrade US debt and gold hit all-time record highs – but will prove more fractious than either 2013 or 2016.

Staff from US Treasury Secretary Steve Mnuchin’s office rang major bond dealers on Friday, Bloomberg reports, to deny “secret plans” to repay debt ahead of paying state-sector salaries if Congress and the Senate fail to agree a higher debt ceiling when the current limit is reached in October.

Having said a debt-ceiling crisis looked “unlikely” only this March, ratings-agency Fitch now says the plan would force it to review Washington’s triple-A status.

President Trump’s plan to repeal and replace ex-president Obama’s Affordable Care Act failed to pass the Senate yesterday after two Republican politicians withdrew their support, saying the new proposal “doesn’t go far enough” and costing the party its majority in the lawmaker chamber.

“In our view,” says Kendall at ICBC Standard Bank, “the Fed is unlikely to be able to increase rates again soon, possibly not again this year, and it will certainly not rush to reduce its balance sheet.”

Betting on next week’s Fed rate decision currently sees 97% odds of “no change” at the current ceiling of 1.25%, according to data compiled by futures exchange the CME.

Betting on a rate rise at the following meeting in September has meantime retreated by one-third from this time last week, with the likelihood of “no change” rising near 92%.

With the Dollar falling once again Tuesday on the FX market, gold priced in other currencies failed to rise as sharply as for US investors.

Euro gold prices reversed all of Monday’s 0.6% gain, while the Yen price halved its 0.7% jump.

The UK gold price in Pounds per ounce pushed higher, however, nearing 2-week highs above £950 after new consumer-price data showed inflation retreating last month to 2.6% per year – down from May’s pace of 2.9% and well below analyst forecasts for a new 3-year record – denting expectations that the Bank of England will end it record-low interest rate policy.

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Source: https://www.bullionvault.com/gold-news/gold-prices-071820172

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,599,621,523
Stories:	8,139,708