Observing news today one can easily get disappointed. However, things are getting better.
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.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.