The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
Gold heads north in Asia with China’s New Year closely watched
On Monday, gold managed to tack on in Asia. As for Japan, this Asian country financial markets are going to be unavailable for a holiday. Meanwhile, market participants are waiting for the upcoming Lunar New Year in China expected to burst out already this week.
As a matter of fact, April delivery gold futures inched up 0.74% in New York on the Comex stock exchange.
This week market participants are watching for a bunch of crucial reports. These are inflation news from such countries as Germany, Great Britain and the United States.
The previous week on Friday, gold prices inched down. The given dive turned to be a fifth day of drops in the last six trading sessions because the stronger evergreen buck put pressure on the most popular precious asset, thus making it more costly for keepers of other currencies. Besides this, the major American currency was backed by soaring safe haven demand from market participants amid impressive moves in the stock as well as bond markets. On Friday, American equities ended up with higher outcomes, although they still demonstrated their most dramatic weekly losses for more than two years.
As some financial experts point out, turbulence in financial markets has been provoked by everlasting rumors that the key US financial institution might have its interest rates lifted at a faster tempo than had been previously anticipated amid evident indications of a pickup in US inflation. Apparently, expectations for higher interest rates happen to be quite dismal for gold. It’s because the number one precious metal actually struggles to take on yield-bearing assets, including Treasury’s especially when borrowing costs edge up.
The evergreen buck also gained support right after Congress along with Donald Trump officially passed a federal budget plan. As a result, an overnight federal shutdown was successfully resolved.
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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