Events in Libya pushed the oil price up. So what's the strategy to benefit from it?
Gold adds as greenback dives on Powell
On Wednesday, the yellow metal faced its greatest one-day profit for more than a month, with Act One of the Federal Reserve and Act Two expected to be uncovered tomorrow.
On the Comex exchange February delivery gold futures rallied by $9.90 concluding at $1,229.80 per troy ounce.
Fed Chief Jerome Powell’s statement provided Wall Street with the tonic required for a mid-week bump. As Powell told, the major bank’s gradual tempo of lifting interest rates has been just an exercise in balancing risks. However, he stressed that there’s no preset policy path. It sent a dovish signal on the evergreen buck that the Fed will do the much-anticipated fourth rate lift in December, then hold off for next year based on how well the American economy is.
Apart from its chairman's speech, the Federal Reserve will also uncover the minutes of its November policy gathering, another diary item, which will be parsed cautiously for language indicative of rate lifts next year.
The USD index, declined by 0.6% following Powell’s statement. Notwithstanding the Dow's’s consequent leap, the evergreen buck’s dive was enough for the yellow metal to rebound 0.8%.
Volatility across financial markets has accelerated ahead of the G20 on rumors whether American leader and his Chinese rival Xi Jinping will be able to come to an agreement to end more than six months of bitter trade clash.
US leader told that he would reject China’s request to hold off plans to raise levies to 25% on some $200 billion of China’s exports from January 1.
Meanwhile, Larry Kudlow, Trump’s key economic adviser has sent out a bunch of confusing smoke signals on whether a pact was real, telling that Chin and America were communicating at all levels, although Xi still require stepping up and coming up with fresh ideas.
The oil prices experienced significant losses amid the US-Iran tensions at the beginning of the year. What's next?
Iran retaliates, Donald Trump will announce the next step by the US today. Gold flies up to $1,600 per ounce.
Canada will publish the headline and core retail sales on January 24 at 15:30 MT time.
The European Central Bank will publish its monetary policy statement and announce the main refinancing rate on January 23 at 14:45 MT time.
Donald Trump spoke at the World Economic Forum in Davos. You have to hear this.