The Gold price declined on Thursday because of the stronger dollar and the early policy made by the United states Federal States. That weighted on the sentiment in the market. 

That was although the losses happened for the safe-haven metal is limited by the concern due to the increasing number of the COVID-19 cases. That may inhibit the global growth. 

The spot of gold declined by 0.5% to become $1.778,65/ounce. Meanwhile, the USD increased to its highest level for nine months after the report of the July report owned by The Fed. 

Most of the representatives hoped that they can reduce the stimulus this year. That is although the consensus about other major problems seems so hard to understand. 

American Benefits Claim Decline

The thing which is unclear is when that situation may happen. However, the tapering is respected to become the gold. The previous data showed the benefits claimed by the American. 

The numbers of those people are declining to the lowest level in 17 months. That situation underlined the lately sight from the Fed’s representatives about the employment market recovery. 

The market focus now is for the yearly meeting that will be held on 26 – 28 of August from the Central Bank Governor in the Jackson Hole, Wyoming. How about the coronavirus case? 

The discussion and concern about the delta variant COVID-19 cases increase hits the risk sentiment in the financial market. For your information, That is wider than before. 

The Safe Haven Asset is More Interesting

The condition above pushes the investors to go to the safe haven asset. Gold is taking the benefit from its safe haven status. Meanwhile, the equity market felt down significantly so far. 

That makes the gold is more interesting right now. The movement above $1.800 seems easier to reach. In a middle-term period, the down pressure will still happen on that commodity. 

However, that will not stop them to get the benefits from the concern. Before, the US dollar increased to its highest level in 9 months. That was happened on Thursday based on a cause. 

It is caused by the widening coronavirus infections and the minutes made by the Fed. It seems that they are considering to decrease the stimulus on this year pandemic era. 

The Global Stock Was Hit

The situation which is occurred hit the global stocks and some currencies related to the commodities. The index of dollar reached the level of 93.587 which is the highest one. 

That has been measured since the November period last month. The last increase was 0.3% in 93.359. The debt purchase reduction done by The Fed is widely thought as a positive value. 

It is especially for the USD because many parties believe that it will increase the obligation yield result for the America’s government. That is why; the investors are then affected. 

They are more interested in holding the asset with dollar denomination. The Fed’s meeting minutes showed that most of the members agreed to reduce their monthly obligation purchase. 

The Tepering is still uncertain

However, the consensus about some other major problems are difficult to understand. It is included when the tapering will be started and whether several situations will trigger the impacts. 

The examples are like inflation, unemployment, or the corona pandemic. They may become a bigger risk to the economy recovery. An analyst from the UBS in New York gave his opinion. 

He think that the market expectation ahead of the Fed’s minute may be slowly decreased and lower than in the 2021. The minutes trigger the Wall Street stock index to be in a lower position. 

The European market also declined on Thursday. Meanwhile, the US safe haven asset increased. Dollar was almost not having any reactions to the weekly unemployment data.