According to yesterday’s news OPEC is considering further production cuts. The next meeting of oil-producing countries is scheduled for December 5-6. The announcement pushed the oil prices up yesterday.
Gold heads north on decelerating global surge
On Friday, gold jumped due to the fact that dismal data in the euro zone drove traders to the safe-haven asset.
Additionally, business sectors across the European Union went down in preliminary data outcomes in March, with German manufacturing shrinking to its slowest outcome for six years.
As some financial analysts, it’s all about the weakness in the EU economy as well as interest rates that makes holding the yellow metal more appealing.
On the Comex exchange, April delivery gold futures went up by 0.5% trading at $1,313.15 an ounce.
The dive in EU data backs the Fed’s dovish stance on Wednesday because the major US financial institution is still concerned about the economic surge in America and worldwide.
The yellow metal is extremely sensitive to interest rates because lower rates normally put pressure on the evergreen buck and ramp up investor interest in non-yielding bullion.
An inversion in the American Treasury yield curve also generated fears among market participants. The yield curve for the American 3-Month Treasury, as well as the American 10-Year, reversed for the first time since 2007 that could point to a meltdown.
Aside from that, Brexit uncertainty has also contributed to backing gold.
The European Union has provided Great Britain with time until May 22 to depart from the EU, provided the UK Parliament passes Prime Minister Theresa May’s Brexit agreement next week. However, if the bill isn’t approved, the European bloc has postponed the official departure date by two weeks to enable the UK legislative body time to come up with a fresh solution and prevent Great Britain from crashing out without an agreement.
Meanwhile, silver futures dived by 0.1% being worth $15.428 a troy ounce.
As for copper futures, they rallied by about 1.6% hitting $2.860 a pound.
The remarks by Nigel Farage during the Brexit party's election event have sent the British pound higher…
The Reserve bank of New Zealand will release the monetary policy statement and its interest rate at 3:00 MT on November 13.
A calm trading session with the US-China trade updates in focus