Heads up to the release of weekly crude oil inventories at 17:30 MT!
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.
Crude oil inventories will be out at 17:30 MT time
The tweet by Iran's foreign minister increased the possibility of tensions in the region. It pushed the oil prices up.
Today, the election in Canada will determine whether the Liberal Party Prime Minister Justin Trudeau or the Conservative Party leader Andrew Scheer will lead the government…
The week will bring us fresh updates on Brexit and the last ECB meeting with outgoing president Mario Draghi.
De-escalation between the US and Turkey and News for the GBP are on the agenda