Observing news today one can easily get disappointed. However, things are getting better.
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.
XAU/USD reversed down from the $1,700 area and dropped to $1,586 on March 12.
Oil market crashed after OPEC+ didn’t agree on production cuts. What’s next? Let’s see what bank analysts have to say about this.
Moody’s downgraded the country to ‘junk’ status on Friday.
The US economy has been hit hard by the coronavirus outbreak.
The United States will publish ISM manufacturing PMI on April 1, at 17:00 MT time.