The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
Gold inches down
On Monday, gold went down in Asia due to the fact that the evergreen buck managed to ascend. The yellow metal kept to $1,310 because fears on global surge deceleration as well as soaring uncertainties surrounding the China-US trade conflict kept affecting investors’ risk appetite.
On the Comex exchange, gold futures reached $1,314.85, sliding by 0.1%.
The previous week, the yellow metal dived by 0.27% capping two winning weeks, while the evergreen buck recorded its greatest weekly soar since May the previous year.
The yellow metal is very sensitive to any changes in the value of the evergreen buck. A stronger US dollar is considered to be a headwind for commodities normally denominated in the American currencies because it makes them more expensive to those who hold other currencies.
The previous week the evergreen buck came right after the European Commission steeply downgraded 2019 Eurozone surge estimate and generated worries of a recession in the key Eurozone economies.
Strengthening uncertainties surrounding the China-US trade clash also affected investor sentiment.
A 90-day trade truce between China and America will expire on March 1. If the deadline manages to pass without an agreement, American leader might proceed with its previously uncovered threat to ramp up levies on China’s goods.
By the way, the previous week, US President told that he didn’t have any plans to meet with Chinese Leader Xi Jinping before the March 1 deadline to make a long-awaited trade deal.
In addition to this, precious metals investors are going to closely watch American economic data for its impact on the US currency this week. Producer and consumer prices as well as inflation and retail figures are all expected to show up later this week.
The yellow metal reached the highest levels in 6 years amid the global risk aversion.
The yellow metal could not stay for a long time near the $1,401 level.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.