According to yesterday’s news OPEC is considering further production cuts. The next meeting of oil-producing countries is scheduled for December 5-6. The announcement pushed the oil prices up yesterday.
Gold edges down to 3-week minimums as greenback rebounds from lows
On Tuesday, gold prices went down to three-week minimums. It’s because the evergreen buck rebounded from minimums, neglecting dismal economic data.
February delivery gold futures lost 0.53% in New York, demonstrating an outcome of $1,389.60 per troy ounce.
The US currency moved off session minimums, thus applying pressure on gold prices notwithstanding a pair of bearish reports, which point to weakness in the American economy.
An indicator or of labor demand in America, the US Labor Department's latest Job Openings and Labor Turnover Survey report uncovered that in December job openings went down to approximately 5.81m, which is short of hopes for 5.96m.
The trade deficit, gauging the gap between what America exports and imports — extended to $53.1 billion in December, adding $2.7 billion from November.
Meanwhile, quite dovish commentary from James Bullard, St. Louis Federal Reserve president, didn’t do a lot to stem losses in the number one precious metal. Bullard told that he generally appreciates low rates for an extended period. Additionally, he warned that nominal wages didn’t appear to be a perfect predictor of inflation.
Greenback-denominated assets, including gold are traditionally considered to be very sensitive to moves in the major American currency – a dive in the evergreen buck makes gold more affordable for holders of foreign currency, thus stimulating demand.
The decline in gold prices emerged as data disclosed that market participants turn to be wary of stepping up their bullish bets on the most popular precious metal.
As for other precious metals, silver futures headed south 0.52% being worth $16.59 a troy ounce. At the same time platinum futures inched down 0.10% showing an outcome of $994.50.
In addition to this, copper futures went down 0.78% trading at $3.2, natural gas slumped 0.04% reaching $2.75.
Today, the euro shows a double-top pattern against the CHF, which may be used by the bears if the pattern is confirmed.
Australia will publish the level of employment change and the unemployment rate at 2:30 MT on November 14.
The euro and the Australian dollar growing against the USD, the British pound in a correction after Monday's rise