The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
Gold inches up towards new 10-month maximum
On Monday, the yellow metal managed to ascend, making its way towards their best outcome since April because the evergreen buck slumped on expectations that America and China would come to an agreement ending their long-lasting trade conflict.
Eventually, on the Comex exchange, gold futures jumped by up to 0.2% being worth 1,329.95 a troy ounce, which is not far from a 10-month maximum of $1,331.10.
As for spot gold, this asset showed $1,326.91 per ounce, adding nearly 0.4%.
Tracking the purchasing power of the American dollar against its primary peers the USD index headed south by 0.2% ending up with 96.54, rebounding from this year’s maximum of 97.23 recorded on Friday.
As a rule, dollar weakness benefits the yellow metal because it spurs its appeal as an alternative asset and also makes dollar-priced commodities less expensive for those who hold other currencies.
Financial markets are going to closely watch another round of trade negotiations between China and America this week, as the counterparts are struggling to come to a compromise, which would prevent a tariff lift on Chinese experts by March 1.
American levies on $200 billion in imports from that Asian country are set to go up to from 10% to 25% in case no deal is reached by March 1. However, American leader told that he might extend the deadline if the two sides got closer to an agreement.
Besides this, market participants are going to pay attention to the publication of the minutes from the US key bank’s last gathering, due on Wednesday, for further clues as for the country’s monetary policy in the nearer future.
After the Fed had rated lifted four times last year, traders currently expect the US key financial institution to cease its monetary tightening policy in 2019 because risks to the American economy escalate.
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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