Heads up to the release of weekly crude oil inventories at 17:30 MT!
Gold heads south ahead of Fed Chair’s remarks
On Wednesday, gold dived due to the fact that traders looked ahead to remarks from Fed Chair Jerome Powell for further clues about the outlook for US monetary policy for the near future.
On the Comex exchange, gold futures hit $1,317.15 a troy ounce, declining by about 0.15%. Besides this, spot gold was worth $1,313.21 per ounce, inching down by 0.15%.
On Wednesday, Powell is expected to deliver an opening statement and respond to questions on US monetary policy at a town hall gathering with tutors in Washington.
The previous week the major US financial institution dropped a hint that its three-year drive to tighten monetary policy will end soon because of soaring headwinds to the American economy.
Besides this, on Tuesday, financial markets digested American leader’s State of the Unionaddress, in which Donald Trump raised the prospect of another government shutdown if his demand for border wall financing is neglected.
Some experts pointed to a probability of another US government shutdown with US leader still keeping to the rhetoric of erecting a border wall. They added that a firmer greenback was taming the yellow metal’s gains.
Estimating the US dollar’s purchasing potential in contrast with its main rivals the USD index jumped by 0.1% being worth 95.92, which appears to be its best outcome since January 25.
A stronger evergreen buck can be a negative for commodities priced in this asset, making them less affordable to those who use other currencies.
As for other metals, silver futures declined by 0.6% ending up with an outcome of $15.74 a troy ounce.
As for palladium futures, they went down by 0.4% concluding the trading session at $1,336.25. Platinum dived by nearly 0.1% being worth $819.30.
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.
The escalation of the US-China trade dispute and the Brexit uncertainties keep affecting the market. Read more!
The reports that the UK and the EU are close to complete a draft Brexit deal have pushed the British pound higher.
The GBP is going to be volatile today, while USD/TRY may be looking for a retest of its highs. Read more!