Events in Libya pushed the oil price up. So what's the strategy to benefit from it?
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.
The oil prices experienced significant losses amid the US-Iran tensions at the beginning of the year. What's next?
Iran retaliates, Donald Trump will announce the next step by the US today. Gold flies up to $1,600 per ounce.
Canada will publish the headline and core retail sales on January 24 at 15:30 MT time.
The European Central Bank will publish its monetary policy statement and announce the main refinancing rate on January 23 at 14:45 MT time.
Donald Trump spoke at the World Economic Forum in Davos. You have to hear this.