Observing news today one can easily get disappointed. However, things are getting better.
Gold goes down, rebounding from 2-1/2 week maximums
On Thursday, gold declined, rebounding from last session's two-and-a-half week maximums reported after mixed American economic reports confounded hopes for a more hawkish rate lift policy by the US main financial institution.
Comex gold futures headed south 0.18% being worth $1,355.6 per troy ounce, having soared to a two-and-a-half week peak of $1,358.50 yesterday.
The number one precious metal initially went down because the evergreen buck rallied right after on Wednesday the Commerce Department informed that in January consumer prices added more than anticipated - by 0.5%. The previous month consumer prices edged up 2.1% year-on-year, thus surpassing hopes for a 1.9% leap.
The vast majority of financial analysts are assured that soaring inflation would turn to be a sort of driver, pushing the major US financial institution toward lifting interest rates at a faster tempo than currently anticipated.
However, the US currency’s revenues appeared to be short lived. It’s because a separate report disclosing that American retail sales went down 0.3% in January versus hopes for a 0.2% rally, powered worries that the Federal Reserve could struggle to lift interest rates rapidly enough just to compensate inflation pressures.
Gold happens to be ultra-sensitive to moves in both the evergreen buck and US rates. A weaker greenback makes gold less costly for keepers of foreign currency. On the contrary, a rally in American rates raised the opportunity cost of keeping non-yielding stuff, including bullion.
On Thursday, the US dollar index, normally employed to assess the US currency’s actual strength versus a trade-weighted basket of six main currencies, headed south 0.18% demonstrating an outcome of 88.74, which is its lowest value since February 2.
Apart from that silver futures headed south 0.11% on the Comex, offering an outcome of $16.87 a troy ounce.
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 $20 per barrel just in the beginning of the day. Currently - above 25$.