This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
Gold reaches 1-month maximum as trade war concerns back safe haven demand
On Friday, gold demonstrated a one-month maximum in European trade because soaring fears as for the prospect of a trade war underpinned demand for the number one precious metal.
April delivery gold futures rallied 1.04% on the Comex exchange coming up with $1,341.20 a troy ounce.
On Thursday, Donald Trump had a memorandum signed announcing duties on approximately $50 billion worth of China’s exports, thus responding to this Asian country’s unfair seizure of American intellectual property.
It definitely triggered safe-haven demand, bringing gold to an intraday peak of $1,343.10, which is its highest result since February 20, in the face of worries that the move could initiate a fierce trade conflict with China.
On Friday, Chinese statesmen turned to be quick to respond, warning America to give up this stance.
In return China’s commerce ministry outlined its intention to target agricultural goods crucial to rural American regions, which are prone to backing Trump. The ministry stressed that China doesn’t want this trade conflict to take place, but on the other hand they aren’t afraid of it at all.
The world’s number two economy uncovered plans to levy extra tariffs on $3 billion of American imports including wine, fresh fruit and nuts to repel import tariffs Trump disclosed earlier in March on aluminum and steel that were expected to come into effect on Friday.
Apart from trade war concerns further pushing gold to weekly revenues of about 2%, in general, prices have been still resilient in both the run up to the key US bank’s 0.25% interest rate lift on Wednesday as well as the post-decision period notwithstanding the major financial intuition raising its 2019 and also 2020 rate lift projections.
Meanwhile, silver acquired 0.90% offering an outcome of $16.535 per troy ounce.
US Energy Information Administration will reveal Crude oil inventories on February 9, 17:30 GMT+2.
On Wednesday, February 2, during the day, members of the Organization of Petroleum Exporting Countries (OPEC) and Joint Ministerial Monitoring Committee (JMMC) will discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.