This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
Gold heads south in early Asia
On Tuesday, gold traded weaker in early Asia, with focus on the Fed as well as demand prospects for the number one precious metal as the major bank is geared up to normalizing monetary policy.
In New York, August delivery gold futures reached $1,267.84 per troy ounce.
Overnight, gold was nearly intact because traders waited for an upcoming Fed interest rate verdict and also press conference from Fed chair Janet Yellen to find out whether the major US financial institution will keep pursuing its monetary tightening path or not.
The FOMC is supposed to raise its benchmark rate from 0.75-1% to about 1-1.25%, following the conclusion of Wednesday’s gathering.
Market participants will pay much attention to the press conference for any clues on the major bank’s plan to diminish its $4.5 trillion balance sheet this year and any probable shift in tone on upcoming interest rate hikes in the wake of poor American economic data.
US Energy Information Administration will reveal Crude oil inventories on February 9, 17:30 GMT+2.
On Wednesday, February 2, during the day, members of the Organization of Petroleum Exporting Countries (OPEC) and Joint Ministerial Monitoring Committee (JMMC) will discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.