This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
Gold declines as American Senate passes tax bill
On Monday, gold slumped in the beginning of a busy week because market participants shifted from safe-haven assets after the US Senate managed to approve a tax overhaul.
In New York, gold futures hit $1,276.50 per troy ounce, sliding 0.5%, from Friday's close.
Negotiations on reconciling the Senate version and with a separate version already approved by the House of Representatives were expected to burst out a bit later in the week. Therefore, a final bill can be sent to Donald Trump to have it signed. By Christmas republicans hope to reach a compromise.
As the Trump administration stressed, its tax cuts will stimulate surge and drive inflation, potentially ensuring a faster pace of monetary tightening by the Fed.
Gold is extremely sensitive to lifting interest rates.
On December 12-13 the Fed is expected to hold its final policy gathering of 2017, with interest rate futures pricing in a 100% likelihood of a rate lift at that gathering. At least it’s ascertained by Investing.com's Fed Rate Monitor Tool.
However, financial markets turned to be doubtful as for the Fed’s capability of raising rates as much as it would like in 2018 due to worries over the sluggish inflation outlook.
US Energy Information Administration will reveal Crude oil inventories on February 9, 17:30 GMT+2.
On Wednesday, February 2, during the day, members of the Organization of Petroleum Exporting Countries (OPEC) and Joint Ministerial Monitoring Committee (JMMC) will discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.