MarketWatch/Rachel Koning Beals/08-28-17
Gold futures pushed above the closely watched $1,300-an-ounce line in Monday trading as the still unfolding devastation—including the economic toll—from Hurricane Harvey pressured the dollar and stocks.
…The moves for gold and the greenback—which often trade inversely as changes in the U.S. unit‘s value can influence the attractiveness of gold to holders of other currencies—came on the heels of a speech by Federal Reserve Chairwoman Janet Yellen last week devoid of clues on the central bank’s near-term monetary policy intentions. Markets continue to put some odds on the chance for another rate hike yet this year but have pared back more aggressive policy expectations priced in earlier this year.
European Central Bank head Mario Draghi also showed restraint, and because he opted not to talk down the euro, it rose to a near 2 1/2-year high.
“Now that we know where both the Fed (dovish) and the ECB stands (tapering on the horizon), gold traders are going to focus on the momentum, which would primarily be driven by the dollar weakness,” said Naeem Aslam, chief market analyst with ThinkMarkets.
