The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
Gold goes down
On Wednesday, gold sank after a two-day rally because a strengthening greenback took some of the bullish support from the yellow commodity because the Fed uncovered details from its latest policy gathering.
However, market experts told that they didn’t see any major hurdles in the precious metal’s path towards another objective of $1,250 an ounce.
Gauging the US dollar’s purchasing potential versus its primary opponents the USD index managed to surge by about 0.5%, which is its greatest surge for three weeks.
Having edged down from a 2018 maximum of $1,343.80 in February, the yellow metal got back to $1,200 in August.
The price of the yellow metal hasn’t rebounded, but tested another support level at $1210. Financial analysts find it a good thing.
The key US financial institution reaffirmed its strong commitment to steady rate lifts, stressing that gradual rally in the target band for the federal funds rate would be in line with a sustained expansion of economic activity.
American gold futures' most-actively-traded contract, with December delivery managed to conclude down $3.60 on the Comex exchange being worth $1,227.40. On Monday, it reached a two-and-a-half-month maximum of $1,236.90.
Eventually a surfeit of geopolitical clashes have backed the yellow metal for the last three weeks, including Saudi Arabia's meltdown over the disappearance of an allegedly killed reporter, China's trade conflict with America as well as Italy's budget issues, which could impact the eurozone.
American bond gains have also reached multiyear maximums, thus restraining the evergreen buck from soaring further, to the yellow metal’s advantage, notwithstanding Fed’s hawkish stance.
The number one precious commodity was also gaining firm support from speculators trying to push it to $1,250 or even beyond ahead of the highly anticipated expiration of options on October 25, as some financial analysts pointed out.
The yellow metal reached the highest levels in 6 years amid the global risk aversion.
The yellow metal could not stay for a long time near the $1,401 level.
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