Yesterday’s private survey showed larger-than-expected cut in oil output.
Gold inches up on softer greenback and trade tensions
On Monday, gold managed to surge, underpinned by the softer evergreen buck as well as escalation in trade tensions between China and America that backed safe haven demand for the number one precious commodity.
June delivery gold futures tacked on 0.6% on the Comex, New York ending up with an outcome of $1,335.3 per troy ounce.
On Monday, China announced that it’s ramping up duties by approximately 25% on certain American imports. That’s an attempt to respond to American duties on imports of steel and aluminum.
The given move powered trade tensions between the world's two leading economies. A great number of investors are afraid that these tensions could evolve into a hazardous trade conflict and give a mighty blow to the world’s economy.
Appreciating the greenback’s value against a group six major currencies, the US dollar index headed south 0.21% offering an outcome of 89.56.
Market participants tend to cling to the most popular precious metal as a store of value when facing times of political or economic uncertainty. Besides this, a weaker evergreen buck makes greenback-denominated commodities more affordable for keepers of other assets.
Trade volumes felt like staying low on Monday with financial markets in Europe unavailable for the Easter holiday, meanwhile American markets were expected to get back after the Good Friday holiday.
Market participants were eager to get actual data from the Institute for Supply Management. To be exact they require American manufacturing index anticipated to show up a bit later in the day.
As for other precious metals, silver futures managed to inch up 1.12% showing an outcome of $16.450 per troy ounce. Platinum futures surged 0.99% offering a result of $941.80.
As for base metals, copper futures ascended 1.21% being worth $3.062 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.
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.
The USA will publish the level of retail sales and core retail sales on September 13, at 15:30 MT time.