Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
Gold fights back in its clash with greenback for safe-haven role
Gold has already lost out in a paradigm shift exactly where the number one precious commodity is no longer considered to be a traditional refuge when traders are in a risk-off mood. However, some financial analysts are assured that it’s not going to last long.
Market participants actively rush to American Treasuries. This fact is proved by the strengthening evergreen buck. However, the evergreen buck’s strength is quite relative, although it’s not absolute.
The number one precious metal has dived to the lowest value since January last year. It’s braced for a firth month of dives because market participants rushed to the evergreen buck against the backdrop of trade clashes, emerging market turmoil as well as a Turkish financial downtime. Moreover, a hawkish Federal Reserve as well as buoyant American stocks have also backed the evergreen buck, which is currently at a 14-month maximum.
American government debt has managed to surge more than three times since 2007. At the same time, tax cuts as well as new federal spending have powered a budget deficit that the Congressional Budget Office estimates is going to hit $1 trillion in 2020. With the major US bank actually winding down debt holdings, American note and bond sales have surged to levels last observed in the aftermath of the meltdown that ended in 2009.
A great number of investors hold physical gold in their personal portfolio. To be exact, they hold it as a form of insurance. They still see gold hitting $1,400 an ounce. That’s a value predicted earlier in 2018. However, investors stood away from providing an exact time frame. On Friday, spot gold was seen at $1,174.
By the way, US Holdings appears to be a subsidiary of Toronto-based Sprott Inc. it kept up to C$11 billion under its management since June 30.
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.
Coinbase Global Inc., the leading cryptocurrency exchange in the US, will go public on the Nasdaq index on April 14!
Today traders await the US inflation data to be out at 15:30 MT. Jump in to get fresh trade ideas for today!