Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
Gold dives, testing $1,200
On Tuesday, gold slumped below a psychologically crucial value of $1,200 because the number one precious commodity extended an everlasting losing marathon into September, which has been mainly powered by strength in the evergreen buck.
December delivery gold futures GCZ8 went down by 0.6% coming up with a reading of $1,199.50 an ounce, having closed at $1,206.70 on Friday.
In August, the yellow metal lost 2.2%, demonstrating its fifth diving month in a row — the longest losing marathon for more than five years, as FactSet data revealed.
In addition to this, December delivery silver futures SIZ8 inched down by 2% reaching $14.170 an ounce. Silver was also contributing to a lengthy downturn, having reported a 7.1% dive for August.
A key driver for the slump in both metals has been a steadily gaining greenback that is capable of making assets pegged to it more costly to investors utilizing other currencies, thus reducing the appeal of silver and gold
The USD index managed to ascend by 0.4% hitting 95.56. Gauging the buck’s purchasing power against its main rivals, the index grew 0.7% in August and has rallied by 1.7% for the last three months.
Meanwhile, in exchange-traded metals, the popular SPDR Gold ETF GLD commodity slumped by 0.4%, while the VanEck Vectors Gold Miners ETF GDX inched down by approximately 0.5%. As for the iShares Silver SLV, this commodity managed to ascend by 1.7% in the premarket trading session.
Apart from that, December delivery copper futures HGZ8 slumped by 2.5% demonstrating an outcome of $2.605 a pound, having lost 6.4% in August. Besides this, October delivery platinum futures PLV8 inched down by 1.9% reaching $772 an ounce, having reported a monthly loss of about 6.6%. As for December delivery palladium futures PAZ8, they shrank by 2.8% being worth $943.10 an ounce, having reported a 4.5% dive in August.
US retail sales will be out on Thursday, April 15, at 15:30 MT. It is a significant release for traders as it will impact the US dollar.
As the earnings season kicks in, JPMorgan is the first to impress us with the better-than-expected data!
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.