Yesterday’s private survey showed larger-than-expected cut in oil output.
Gold heads south to year’s minimum
On Thursday, gold sank, keeping to a year’s low.
August delivery gold futures headed south 0.3% being worth $1,227.70 an ounce. September delivery silver futures dived by 0.1% trading at $15.565 an ounce.
A traditional gauge of the American currency versus a pack of other crucial currencies, the USD index rallied approximately 0.1% demonstrating 94.29.
A stronger greenback is capable of making commodities priced in this asset less affordable in contrast with those utilizing other monetary units. In 2018, silver has lost about 9.5%. This year gold has declined nearly 6.4%. Having dived nearly 9.8% last year, the USD index started 2018 on the back foot.
Some market experts doubt in gold’s capability to withstand this pressure. They actually expect the greenback’s strength that has put pressure on gold’s performance for the last time to recede during the second half of this year.
Market experts added that a buyback-driven soar in the stock market drops a hint at its fragility.
While fragilities and imbalances keep mounting in traditional asset markets, the number one precious metal’s portfolio insurance value is priced cheaply. It appears to be a signal that market dynamics will change in the nearer future.
In general, on Wednesday, metals prices were mostly unchanged even as risky assets, versus which metals are used to trading inversely, managed to tack on when American leader Donald Trump as well as European Union chief Jean-Claude Juncker achieved preliminary progress on a number of trade issues.
As for other commodities traded on the Comex exchange, September delivery palladium futures managed to edge up by 0.5% being worth $932.90 an ounce. October delivery platinum futures ascended by approximately 0.4% hitting $842.80 an ounce. As for September delivery copper futures, they added up to 0.1% showing $2.8225 a pound.
The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
The yellow metal reached the highest levels in 6 years amid the global risk aversion.
Pay attention to the FOMC meeting, where the rate cut is expected. Also, it is recommended to keep an eye on the oil prices, updates on trade talks between the USD and China and, of course, Brexit.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.