Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
Gold retreats, as greenback stabilizes
On Wednesday, gold was braced for back-to-back dips because a leading USD index managed to ascend from a one-month minimum.
December delivery gold futures GCZ8 headed south by 0.4% trading at $1,209.70 an ounce. So far this week, the most popular precious commodity has slumped by 0.3%.
The ICE USD index DXY rallied by 0.2% hitting 94.912, decreasing by 0.3%. Nevertheless, for August the index has jumped by 0.4%. For the year it has managed to leap by 3%.
Gold often rises when the evergreen buck dives, and vice versa due to the fact the yellow precious metal is often traded in the US dollar. The evergreen buck has been the key driver for gold action this year, with gold losing 9% in 2018 through August.
The bull pressure on gold has been temporary. Perhaps, one of the reasons of gold’s recent dive is that the American economy is standing on firm ground and US customers are feeling quite confident about it, and it follows from yesterday’s economic reports, as some financial analysts pointed out.
The key US bank is anticipated to have its benchmark interest rate lifted in September and then in December. In addition to this, the Fed consider extra mild rate tightening next year, although the panel has recently noted bubbling worries for a trade-impacted economic deceleration.
On Wednesday, the popular gold exchange-traded fund SPDR Gold Shares GLD went down by 0.3%. Besides this, the VanEck Vectors Gold Miners ETF GDX slumped by nearly 0.2%.
As for other metals, December delivery silver futures SIU8 declined by 0.8% showing $14.77 an ounce. December delivery high-grade copper futures HGU8 rebounded from Tuesday’s impressive profit, last losing 0.9% hitting $2.734 a pound. Besides this, October delivery platinum futures PLV8 dived by 0.6% trading at $790.80 an ounce, while December delivery palladium futures PAU8 dipped by 0.3% trading at $939.40 an ounce.
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