A great oil surge
As usual, the reason is hidden in US political games…
Aggressive Fed rate lift outlook suppresses gold
On Thursday, gold headed south right after the key US bank decided not to change its interest rates, although the key bank hinted that further rate lifts might take place a bit later in 2018.
Gold futures went down in New York demonstrating an outcome of $1,343.10 per troy ounce.
During the last policy gathering with Janet Yellen as Fed Chair, the major US financial institution revealed that it would leave interest rates on hold – a widely anticipated move. The key bank added that inflation would most likely ascend in 2018.
Those remarks indicated that borrowing costs are going to keep soaring under new Fed Chair Jerome Powell.
The vast majority of market experts are absolutely assured that the key American financial institution will have interest rates lifted already in March. Another rise is anticipated to take place in June, while a third one is believed to emerge in December.
As a matter of fact, gold turns to be very sensitive to lifting rates because it raises the opportunity cost for holders of nonyielding bullion.
Treasury yields headed north, with the benchmark 10-year note moving to 2.75%, which is the highest value for nearly four years.
Apart from the Federal Reserve, there’s a flock of reports on today's economic calendar, with weekly jobless claims, fourth-quarter productivity to say nothing of labor costs. Other crucial economic reports include manufacturing and construction.
Market participants are looking ahead to US nonfarm payrolls report to be unveiled on Friday.
As for other metals, silver futures were intact, still demonstrating an outcome of $17.24 per troy ounce. Besides this, palladium headed south, losing approximately 0.3% being worth $1,020.80 an ounce. Platinum went down 0.6% trading at $997.90. March delivery copper futures were nearly intact demonstrating a reading of $3.195 per pound.
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