Observing news today one can easily get disappointed. However, things are getting better.
Gold edges down to 1-week minimums on strengthening greenback
On Friday, gold sank to one-week minimums because positive American employment data gave further support to the evergreen buck, while news of an upcoming gathering between America and North-Korean leaders kept backing risk sentiment.
Gold futures slumped 0.38% hitting $1,317.1 a troy ounce.
Official data uncovered that in February the American economy managed to generate 313,000 jobs, surpassing hopes for 313,000. The unemployment rate was intact sticking to 4.1%, confounding hopes for a further dive to 4.0%.
Apart from that the report disclosed that average hourly earnings tacked on 0.1% in February, ruining hopes for a 0.2% jump.
Judging the greenback’s actual strength versus a basket of six leading currencies, the US dollar index rallied 0.17% being worth 90.27, which is the highest outcome since March 1.
Gold has always demonstrated high sensitivity to any moves in the dollar’s value. As a matter of fact, a stronger greenback makes gold more costly for keepers of foreign currency.
Additionally, market sentiment was spurred after on Thursday Donald Trump announced his readiness to accept an invitation to have a meeting North Korean leader Kim Jong Un in a hope to achieve 100% denuclearization.
Worries over a hypothetical global trade conflict because of American duties on steel and aluminum imports relieved after on Thursday President Trump signed a moderate version of the plan.
The US President imposed 25% duties on steel imports as well as 10% on aluminum. At the same time Mexico and Canada were granted exemptions.
Japan considered this move to be extremely crucial for the countries' close bilateral relationships. However, China found that decision absolutely unacceptable. As for South Korea, it reported its willingness to inform WTO against this move.
Besides this silver futures went down 0.52% on the Comex hitting $16.43 a troy ounce.
XAU/USD reversed down from the $1,700 area and dropped to $1,586 on March 12.
Oil market crashed after OPEC+ didn’t agree on production cuts. What’s next? Let’s see what bank analysts have to say about this.
WTI oil prices jumped up after Donald Trump’s 2 tweets
Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.
WTI was at $20 per barrel just in the beginning of the day. Currently - above 25$.