Forex news and forex forecasts

07/12/2017 18:091

Gold is at 5-month lows2

The ounce troy of the safe haven metal continues to shed ground during the second half of the week and is now approaching the key $1,250 area, or 5-month lows. The demand for the yellow metal remains subdued amidst a strong pick up in the sentiment surrounding the greenback, particularly after the Senate passed the tax reform bill earlier in the week. In this regard, the way appears paved for President Trump to sign off the bill before Christmas, giving extra legs to the buck’s rally. Also weighing on the yellow metal, prospects of further tightening by the Federal Reserve via rate hikes remain solid for the next year despite US inflation still lacks of sustainable upside traction. Bullion has extended the downside this week in spite of the rising effervescence in the Middle East after President Trump recognized Jerusalem as Israel’s capitol city.3