Gold has hit fresh all-time high before turning flat

LONDON (February 19) Gold’s price (XAU/USD) has hit a fresh all-time high above $2,945 during the European trading session on Wednesday before falling flat just ahead of the US trading session taking over. The up-move comes after United States (US) President Donald Trump’s harsh words on Ukraine overnight, just hours after first talks between the US and Russia officials raised concerns among traders if a peace deal is even in the cards. Meanwhile, President Trump confirmed again that 25% tariffs on automobile imports are coming, extending to pharmaceutical and semiconductor imports in addition. 

Meanwhile, the Federal Reserve (Fed) is set to release the Federal Open Market Committee (FOMC) Minutes for the January meeting. This could throw a spanner in the works for Gold, as several Fed officials have said in recent weeks that rates are reasonable where they are while some inflationary forces are enough for renewed concerns.

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• Mortgate Applications are dropping lower by 6.6% this week. The number boosts a stronger US Dollar and sees Gold falling back to flat from its new all time high printed earlier this Wednesday.
• At 19:00 GMT, the Fed will release its January FOMC Minutes. 
• Late Tuesday, US President Donald Trump pledged to impose tariffs on automobiles, semiconductors, and pharmaceutical imports of around 25%, Bloomberg confirmed. 
• Turkish Gold miner Koza Altin aims to produce more than 40 tons of Gold in the next five years, the company says in an exchange filing after the market closed on Tuesday, Bloomberg reports.
• The US 10-year benchmark is trading at the high of this week, near 4.57% at the time of writing. 

FXStreet