Dollars in gold demand, depressed for 5 year low
The U.S. dollar held broad gains across Asia on Monday as investors looked forward to higher interest rates from the Federal Reserve, while gold plunged to five-year lows of lack of global inflation is leaving little to hedge against.
The u.s. dollar held broad gains across Asia on Monday as investors looked forward to higher interest rates from the Federal Reserve, while gold plunged to five-year lows of lack of global inflation is leaving little to hedge against. Precious metals XAU = Run into a wave of selling in Asia which drove down 3.9 percent to 1, 089.80 USD per ounce, already suffering the worst weekly performance since March last week.
Activity was light in other places with Japan holidays and a dearth of primary data in the Daybooks, leading to the start of the take care to stock. The main index in Australia. AXJO is a small part of the tender, while the MSCI broad Index Asia-Pacific stocks outside of Japan. MIAPJ0000PUS is all but flat.
There was better news from China where home prices rose for the second consecutive month in June, suggesting the Government's efforts pushed the struggling property sector has begun to gain traction. Chinese shares appeared to have pulled out of their nosedive amid a barrage of measures from regulators and purchased by brokers and mutual funds.
The index of the biggest companies of CSI300 listed in Shanghai and Shenzhen rose 0.1 percent, while the Shanghai Composite Index eased 0.2 percent.
The Bank of Greece was set to reopen on Monday after a three-week close, while Germany Chancellor Angela Merkel called the talks help fast so that Athens could also lift the withdrawal limits.
Greece faded from the limelight, the market focused on the relative outperformance of the us economy and pushed the euro close to its lowest in seven weeks in 1.0826 us dollars.
Break through may at around USD 1.0818/19 will likely embolden bears to head for the lowest Apr USD 1.0521. "For the moment, with the agreement on Greece's current card and follow the demands of creditors, emerging markets can move on and focus on other things," says ANZ. "Solid US data and further easing the pressure of global markets has boosted expectations that the Fed could start to normalize prices this year." That helped the dollar up to 124.13 yen, near its highest in around three weeks, while the dollar index of 97.991.
DXY land last visited in April. The commodities markets, oil was saddled with the prospect of increased exports from Iran now a deal has been struck to relieve the State's sanctions. Brent crude LCOc1 was off 15 cents on Monday at 55 USD a barrel, while U.S. crude CLc1 fell 9 cents to USD 53.
