FOREXYARD: Forex News Blog

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Gold and Silver Tumble Post Fed Meeting Posted: 04 Apr 2012 06:05 AM PDT Gold and silver prices sharply fell as a result of a strengthening U.S Dollar post Fed Minutes Meeting.The two metals were coming off a two-day rally prior to the FOMC Meeting which was held yesterday. The yellow metal experienced its biggest decline in four weeks. Hopes for further monetary stimulus was talked down during the Fed Meeting which resulted in a rising Greenback causing both gold and silver to sharply fall. There is talk suggesting the recent rallies in Gold prices were nothing more than a limited correction, as investors are showing concern over the metals’ current market situation. Gold which is known to be a safe haven usually benefits from expectations of monetary stimulus.Due to the fact that investors would turn to the metal as a safe store of value and inflation hedge. Meanwhile, the U.S Dollar continued to strengthen during Asian and European trading today. Gold and silver’s downfall is largely due to a rising Dollar, which puts great pressure on dollar- denominated commodities as they become alot more expensive for holders of other currencies. Gold prices were also affected by the protests in India which have moved into a 19th day. The strike has a big impact on the precious metals market as India was the second largest bullion consumer in the fourth quarter. As long as the Greenback goes from strength to strength, gold and silver prices will struggle to maintain a steady position in the markets.

U.S Dollar Up After Fed Meeting Posted: 03 Apr 2012 07:23 PM PDT The Greenback made some gains over its currency rivals after minutes from the FOMC Meeting in March showed signs that Monetary officials were moving away from the idea of additional easing.Prior to the FOMC meeting minutes, the greenback was trading slightly down The Euro fell to its biggest loss since early March versus the U.S Dollar as it dropped approximately 0.8 percent to $1,3231. The other Major making moves was the Australian Dollar, after news that the Royal Bank of Australia decided to leave interest rates unchanged.This outcome had a negative impact on the Aussie and as a result, weakened against the U.S Dollar dropping to $1,0309 which was a 1.1 percent decline. According to reports out of Australia, growth was moving at a slower rate than expected,therefore prompting the RBA not to tamper with the interest rates, thus causing the Aussie Dollar to show some downward movements. As we move into the middle of the trading week, a number of economic calendar events are due for release including Europe’s Interest Rate Decision,ECB Press Conference, ADP Non-farm Employment Change.

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