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 to the lowest value in a month amid strengthening greenback
On Thursday, gold slumped, hitting its lowest value for a month because the evergreen buck inched up underpinned by hopes for more American interest rate lifts in 2018.
The number one precious metal has always demonstrated high sensitivity to growing American interest rates because they have the opportunity cost of keeping non-yielding bullion lifted, simultaneously spurring the US currency, in which it’s denominated.
A stronger American currency normally puts pressure on gold because it affects the commodity’s appeal as an alternative safe-haven and makes greenback-priced commodities more costly for holders of other currencies.
Comex gold futures went down to a session minimum of $1,311.70 per troy ounce. That’s the worst value observed since January 10. Last it traded at $1,314.10, losing 0.1%.
On Wednesday, gold futures concluded lower for a fourth-straight trading session. It’s because the US dollar index along with Treasury yields managed to rally, thus diminishing demand for gold.
On Thursday, the greenback's uptick kept unrolling in early trade. Versus a basket of six main counterparts, the American currency turned to be a bit higher sticking to 90.25, which is its highest value for two weeks. Additionally, the revenue on the 10-year Treasury note kept to 2.82%.
The ascend in the profits also came amidst reports that American Senate leaders finally reached a two-year budget pact to have government spending lifted by nearly $300 billion.
Besides this, focus remained on American equities that could be blamed for causing the latest turbulence in financial markets around the globe.
Unless the market dip steps up, affecting the economy, the key US bank won’t probably budge from its initiative to lift borrowing costs up to three times in 2018, as some financial experts told.
As for other metals, silver grew 0.4% hitting $16.30 a troy ounce, palladium dived 0.8% reaching $976.60 an ounce, while platinum decreased 0.3% demonstrating $978.80.
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