Yesterday’s private survey showed larger-than-expected cut in oil output.
Gold drops amid relieving tension in trade relations
On Thursday, gold tumbled after the return of demand for risky assets. Market participants made up their mind that the recent exchange of imposing duties between the US and China can be regarded as a tactic for negotiating, while both countries will eventually come to a compromise.
June delivery gold futures dived 0.75% on the Comex exchange coming up with $ 1,330.0 per troy ounce.
On Wednesday, prices for the most popular precious commodity rose to a weekly high after China announced a fresh portion of duties on imports of goods from the United States in response to the plans of the Trump administration to introduce import duties on Chinese goods.
Fears that protectionist policies could end up with a full-scale trade conflict, led to a jump in demand for protective assets, such as gold for example.
However, tensions in international trade relieved after on Wednesday US economic adviser Lawrence Kadlow announced that duties on Chinese goods might not enter into force. He also said that there aren’t any trade clashes between the US and China.
The sentiments of market players also improved amid forecasts that the US could reach an agreement with Canada and Mexico on the issue of renegotiating the North American Free Trade Agreement.
The US dollar index, which displays the purchasing power of the evergreen buck to the trade-weighted basket of six major rivals, tacked on 0.18% showing 107.09.
The demand for gold is growing during geopolitical tensions or instability in the financial markets, and the surge of the evergreen buck makes the commodity traded in that currency more expensive for keepers of other currencies.
Investors shifted their attention to a new report on employment in the US as well as the speech of the head of the Fed, Jerome Powell, scheduled for Friday. Apparently, Powell's statements might affect the rate of the US currency.
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.
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.
The USA will publish the level of retail sales and core retail sales on September 13, at 15:30 MT time.