The dollar favors precious metals. Gold up

Trade talks between the US and China are still ongoing. Despite the fact that the main Wall Street indexes managed to make up for the recent declines, working out small increases, the dollar has recently weakened significantly. In comparison to other major currencies (even to the recently very strong gaining pound) looks pretty pessimistic on their background.

A weak dollar opportunity for gold

The weakening of the dollar in recent times has affected the valuation even gold. Noting worse results, this currency supports the price of gold. Quite recently metal has set a new 10-month peak. The price of gold is also undoubtedly favored by uncertainties related to the agreement between the US and China.

Gold chart, H1 interval, source: JForex Dukascopy

Pallad enjoys the interest of investors

The increase in demand for this metal according to Bloomberg's analysts is related to restrictive regulations regarding cars with a diesel engine, which in many countries will be in force in the coming years. One of the most important materials for the production of gasoline engines is palladium.

FOMC meeting

The present Federal Reserve's release of information from the last FOMC meeting had a significant impact on US dollar-related instruments. During the meeting, the bankers stressed several times that the time has come which requires patience. Is this a suggestion that suggests stopping the process of tightening monetary policy in the US?

As reported by FOMC:

"A patient attitude would allow a clearer picture of international trade policy and the state of the global economy, and in particular would allow policy-makers to more firmly assess the extent and durability of the economic slowdown in Europe and China.".

Stopping interest rates at the current level is to support the uncertainty of the market. The current condition of the economy combined with moderate inflationary pressure is one of the key arguments for keeping rates at the same level.