Heads up to the release of weekly crude oil inventories at 17:30 MT!
Gold dives, staying below major $1,200 line
On Thursday, gold rebounded, slumping below $1,200 Thursday, shrugging off the slight boost obtained after a worrying note on trade clashes found within the Fed’s mostly status quo policy gathering minutes.
Gold slumped because a leading dollar index DXY managed to ascend, although this gauge of the US currency buck versus its six counterparts was demonstrating a 0.8% decline for the week.
December delivery gold futures GCZ8 headed south by 0.7% demonstrating an outcome of $1,195.20 an ounce. On Wednesday, the contract showed $1,203.30, thus marking the highest close since August 10.
Prices for the number one precious metal extended its profits, then rebounded in electronic trading on Wednesday following minutes from the key US bank’s early-August gathering that indicated support for another interest-rate lift in September, although suggested that Fed officials might have to pause lifts if international trade clashes escalate and risk hobbling the world’s economy.
China and America drove their everlasting trade conflict, implementing another 25% duties on $16 billion worth of each other’s products on Thursday.
Investors are quite anxious for further signs of a changed tempo for interest-rate lifts. The key US bank is anticipated to have rates lifted next month and one more time in 2018, while proceeding with a course of mild rate lifts in 2019.
Underpinned by higher American rates relative to other key economies in the world, the evergreen buck has managed to rally nearly by 3.5% so far in 2018. Soaring interest rates ramp up the opportunity cost of holding non-yielding gold, backing the US currency, in which gold is actually denominated.
Against the backdrop of back-and-forth sessions, gold has soared about 1% this week, rebounding from its worst weekly reading for more than a year.
Meanwhile, September delivery copper futures dived by 1.4% hitting $2.637 a pound.
Crude oil inventories will be out at 17:30 MT time
The tweet by Iran's foreign minister increased the possibility of tensions in the region. It pushed the oil prices up.
The reports that the UK and the EU reached a deal pushed the GBP up immediately.
The European Brexit Summit will gather the main attention today...
Australia will publish the level of employment change and the unemployment rate at 3:30 MT on October 17.