Yesterday’s private survey showed larger-than-expected cut in oil output.
Gold dives amid strengthening US currency
On Thursday, gold tumbled in the face of a stronger US currency, getting closer to a six-month minimum because the Fed Chair officially confirmed an outlook for higher interest rates in America.
As a matter of fact, August delivery gold futures went down by 0.56% on the Comex exchange offering a result of $1,267.40 a troy ounce.
Closely watching the purchasing potential of the US currency relative to its six key rivals, the USD index showed 94.92, soaring by up to 0.15%.
It’s apparent that greenback-denominated assets, including the precious yellow metal, turn out to be very sensitive to any changes in the value of the US currency. A soar in the value of the US dollar makes gold less affordable for those investors who keep foreign currencies, and it diminishes demand for the number one precious commodity.
In addition to this, long-term Treasury revenues managed to revive from three-week minimums on Wednesday, backing the evergreen buck’s leap on Thursday.
On Wednesday, Fed Chair Jerome Powell told that the US key financial institution should proceed with its gradual policy of rate hikes, and this statement backed yields. During a gathering of key bank chiefs in Portugal he pointed out that trade tensions could seriously damage the world’s economy.
On Thursday, American leader Donald Trump told that he’s on the verge of announcing fresh trade deals with some unspecified countries in the nearer future.
Previously, on Monday, Donald Trump urged the US Trade Representative to identify $200 billion worth of China’s goods for extra duties. It’s evident that the news provoked a sell-off in shares and it was cited as a sort of support for gold prices.
As for other precious commodities, silver futures went down 0.52% being worth $16.225 a troy ounce, platinum futures sagged by 0.84% coming up with $863.40 an ounce.
The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
The yellow metal reached the highest levels in 6 years amid the global risk aversion.
Pay attention to the FOMC meeting, where the rate cut is expected. Also, it is recommended to keep an eye on the oil prices, updates on trade talks between the USD and China and, of course, Brexit.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.