What will happen? The Organization of the Petroleum Exporting Countries and 10 additional oil-exporting countries, including Russia, will hold a videoconference on July 1…
Gold rebounds on US tariffs
On Friday, gold rebounded, drifting away from a two-month minimum because news of American tariffs on steel as well as aluminum imports affected market participants, making them shift to safer assets.
Gold futures tacked on 1.00% being worth $1,318.3 per troy ounce, which is off Thursday's two-month minimum of $1,303.60.
On Tuesday, Donald Trump revealed his intention to impose tariffs of about 25% on imported steel as well as 10% on aluminum with the aim of protecting American industry.
The given move actually generated worries over potential trade conflicts. Many investors are afraid that it might have rather an adverse impact on the American economy, putting a log of pressure on risk sentiment.
The news managed to overshadow upbeat remarks by new Federal Reserve Chair Powell. On Thursday, the statesman ascertained that there wasn’t any evidence that the American economy is currently overheating.
Just two days earlier, Fed Chair had repeated that the US major financial institution would probably proceed with gradual hikes in interest rates.
In addition to this on Thursday New York Federal Reserve President William Dudley told that four interest-rate lifts in 2018 would undoubtedly mark a gradual monetary tightening.
Estimating the US currency’s actual strength against a group of six main currencies, the US dollar index didn’t change, demonstrating an outcome of 90.24. That’s off Thursday's six-week maximum of 90.89.
Gold has always reacted to any moves in the evergreen buck as well as American interest rates. A weaker greenback makes the number one precious metal less expensive for keepers of foreign currency. On the contrary, a soar in American interest rates steps up the opportunity cost of keeping so-called non-yielding assets, including bullion.
Silver futures on the Comex managed to inch up about 1.11% being worth $16.38 a troy ounce.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.