This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
Gold goes down, as greenback stabilizes
On Wednesday, gold went down in the face of a steady greenback as well as firmer stocks.
August delivery gold futures went down by 0.2% being worth $1,275.90 a troy ounce.
Regional sentiments managed to revive, with Japan’s Nikkei 225 soaring by 0.6% and South Korea’s KOSPI adding by 1.1%. As for the Hang Seng Index in Hong King, it went down by 0.5%.
This week North Korea’s leader Kim Jong Un and China’s leader Xi Jinping met in Beijing and came to a mutual understanding on a number of issues. Among the most crucial ones was the complete denuclearization of the Korean peninsula. That’s what North Korea’s state media uncovered on Wednesday.
Kim’s two-day visit to China’s capital that followed his Singapore crucial summit the previous week would be over today, according to the state media.
This week global financial markets went into risk-off mode following the announcement of the probable fresh 10% duties on $200 billion Chinese goods as well as an angry reply from the Chinese government telling that America has sparked a trade feud, breaking market regulations, which harms the interests of not just the Chinese and the population of the United States, but also the entire world.
The evergreen buck rallied a bit during Asia morning trade due to the fact that revenues of American treasures rebounded from their minimums.
Additionally, the US dollar index, gauging the major American currency versus several key currencies, managed to ascend by 0.11% demonstrating a reading of 94.75.
Greenback-denominated assets, including gold have always shown its high sensitivity to any fluctuations in the evergreen buck.
As for other precious commodities, silver futures went down by 0.73% being worth $16.320 a troy ounce, platinum futures inched down by 0.71% showing $862.20 an ounce.
For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.