For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Gold rallies to 3-month maximums
On Monday, gold surged nearly 1% hitting the highest value for three months because a combination of fears over soaring American yields as well as the impact of trade clash, along with geopolitical risks and also a weaker greenback, backed demand for the yellow commodity.
December delivery gold futures ascended by 1.06% on the Comex exchange hitting $1,234.90 having soared to $1,236.90, which is the greatest leap since mid-July.
The previous week the yellow metal jumped by approximately 1.4%, notwithstanding Friday’s tumble, posting a second-straight weekly soar.
Safe-haven demand for the most popular precious commodity was underpinned in the face of abrupt dips in global stock markets because traders dumped risky assets.
Treasury gains started soaring earlier in October against the backdrop of hopes for a faster-than-anticipated tempo of rate lifts from the main American bank because the outlook for the American economy is still firm.
Increased geopolitical risks from Brexit, and also the row over Italy’s budget, not to mention escalating diplomatic tensions between Saudi Arabia and the Western world over the disappearance of a reporter also put pressure on market sentiment.
The yellow metal obtain an extra boost from the broadly weaker evergreen buck, with the USD index, gauging the greenback’s purchasing power versus a pack of six primary currencies, lost 0.23% being worth 94.72.
A slipping greenback is able to make dollar-denominated assets, including the yellow metal, cheaper to potential purchasers who hold other currencies.
Hopes for soaring interest rates will most probably stay a headwind for gold. As a matter of fact, interest rate lifts and higher American bond gains affect appeal for gold that comes with no yield.
Furthermore, December delivery silver futures gained 0.96% trading at $14.77 a troy ounce. January delivery platinum futures hit $853.30, soaring by 1.57% for the day.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.