Gold (XAU) has been the commodity of choice of late as a safe haven and depending on the outcome of the meeting minutes we might see the precious metal react once more. The price of Gold (XAU) has had a stellar run this year reaching highs last seen in 2013 as global recession fears grew stronger.
Gold stocks on the Johannesburg Stock Exchange (JSE) and other major Indices have also reacted to the momentum in the yellow metal. As of Monday, market close the Gold miners on the JSE have led the charge with Sibanye (SGL) up 59.88% YTD, Harmony (HAR) gained 27.98% YTD And DRD Gold (DRD) with 37.7% YTD.
Gold continued to edge lower on Tuesday morning mainly due to recovering Bond yields and the U.S Dollar (USD) reaching new multiweek highs.
All eyes will be on FED chair Powel tomorrow as he testifies in front of the Joint Economic Committee, in Washington DC around 16:00 SAST. Market participants will listen closely to what the FED chair has to say about the economic outlook and recent monetary policies.
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