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 south
On Tuesday, the yellow metal slumped in Asia due to the fact stocks revived having dived yesterday on American leader’s threat to increase levies on Chinese goods.
On the Comex exchange, June delivery gold futures headed south by about 0.1% ending up with $1,282.85 per ounce.
The yellow metal gained some support in the previous trading session as Asian stocks went down, with Chinese shares slumped over 5%, right after Trump told he wasn’t satisfied with the progress in trade negotiations with China and that America will ramp up levies on $200 billion worth of China’s goods from 10% to 25% this Friday.
Gold is often utilized by market participants when it comes to hedging against economic as well as political instability.
As some financial analysts pointed out, there are considerable drivers for the yellow metal with the escalation on the trade war front yesterday, although it’s weird they haven’t observed an enormous follow through.
Some traders are also paying attention to the tensions in the Middle East. The two drivers are sufficient to hold prices, although there’s a general reluctance to make prices overleap $1,285.
Today, Asian equities managed to recover after reports told that a China-U.S. trade deal is still not off the table. By the way, American Trade Representative Robert Lighthizer told that Chinese Vice Premier Liu He will proceed with leading a delegation to go to America for trade negotiations this week.
Remarks from Treasury Secretary Steven Mnuchin who told that America would reconsider the levies if negotiations get back on track backed hopes that the two leading economies might still be able to come to a compromise.
Today, the euro shows a double-top pattern against the CHF, which may be used by the bears if the pattern is confirmed.
Australia will publish the level of employment change and the unemployment rate at 2:30 MT on November 14.
The euro and the Australian dollar growing against the USD, the British pound in a correction after Monday's rise