According to yesterday’s news OPEC is considering further production cuts. The next meeting of oil-producing countries is scheduled for December 5-6. The announcement pushed the oil prices up yesterday.
Gold ascends to session maximums on US inflation data
On Wednesday, gold managed to leap reaching the best levels of the trading session because data disclosed that American consumer price surge speeded down in November.
On the Comex exchange gold futures tacked on by 0.3% coming up with an outcome of $1,251.20 a troy ounce, which is not far from a five-month maximum of $1,256.60 hit at the beginning of the week.
Besides this, spot gold accounted for $1,246.28 a troy ounce, adding 0.25%.
As the Labor Department pointed out, its consumer price index was intact from November, decelerating from the 0.3% jumped recorded in October. By the way, market experts had hoped it would soar by 0.1%.
Consumer prices surged by 2.2% in the 12 months through November. The given outcome turns out to be in line with estimates and also down from October’s reading of 2.5%.
Without the weaving energy and food, the core CPI rallied by about 0.2%, which is in line with hopes. The annual surge in the core CPI amounted to 2.2%.
The data underlined hopes that the major American financial institution will speed down its pace of rate lifts next year.
Eventually, lower interest rates can underpin the yellow metal because it cuts the relative cost of holding on to the commodity that doesn't provide traders with any similar guaranteed payout.
Estimating the purchasing power of the greenback against its key competitors the USD index slumped by nearly 0.2% being worth 97.15.
As a rule, dollar weakness benefits the yellow metal because it boosts gold’s appeal as an alternative asset and also makes dollar-priced assets more affordable for those who hold other currencies.
As for other metals, silver futures rallied by 1.1% hitting $14.78 a troy ounce.
Platinum surged by 1% showing $793.80, palladium gained 0.9% trading at $1,187.55.
As for March delivery copper futures, they were intact at $2.767 a pound.
Today, the euro shows a double-top pattern against the CHF, which may be used by the bears if the pattern is confirmed.
Australia will publish the level of employment change and the unemployment rate at 2:30 MT on November 14.
The euro and the Australian dollar growing against the USD, the British pound in a correction after Monday's rise