According to yesterday’s news OPEC is considering further production cuts. The next meeting of oil-producing countries is scheduled for December 5-6. The announcement pushed the oil prices up yesterday.
Gold sinks as copper dives to its lowest value for a year
On Wednesday, gold declined, suppressed by the fact that trade clashes between China and America intensified, driving worries as for demand for industrial metals as well as bringing copper prices to their lowest close for a year.
August delivery gold futures dived 0.7% being worth $1,246.70 an ounce.
September delivery silver futures sank by 1.4% hitting $15.855 an ounce, making its way for its lowest value for more than a week.
Another escalation in US-China trade clash heavily impacted all of the metal commodity prices. As a matter of fact, gold was suppressed by the broad sell-off in zinc and copper.
September delivery copper futures headed south by 3.28% being worth $2.746 a pound, bracing for the lowest close since late July 2017. As for September delivery zinc futures, they went down by 2.1% trading at $2,564 per metric ton.
Gold has mostly stayed i a downtrend, which has made market participants as well as technical analysts maintain rather a bearish outlook for this popular precious commodity, which should ordinarily give benefits during times of uncertainty, such as these trade clashes between America and its partners throughout the world.
On Tuesday, the US government told it would consider 10% duties on another $200 billion in China’s products. Undoubtedly, the given move can hardly help to get along with the Chinese government. Moreover, it’s a clear signal for other trading partners of this superpower that America isn’t going to back down in a trade conflict. So, it’s not wonder that it brought equities down.
Strength in the evergreen buck also contributed to gold’s slump on Wednesday. As a matter of fact, the ICE USD Index, reflecting the US currency’s performance versus a half-dozen currencies, managed to tack on by 0.2% demonstrating a reading of 94.37.
Today, the euro shows a double-top pattern against the CHF, which may be used by the bears if the pattern is confirmed.
Australia will publish the level of employment change and the unemployment rate at 2:30 MT on November 14.