Yesterday’s private survey showed larger-than-expected cut in oil output.
Gold sinks on soaring greenback
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums.
December delivery gold futures slumped by 0.5% coming up with an outcome of $1,217.50 an ounce.
In addition to this, September delivery silver futures declined by 0.7% reaching $15.355 an ounce.
Gold’s dip can be explained by the fact that the USD index ascended by 0.15%.
Trading in commodities has taken place in the face of a focus on global trade clashes that have underpinned the greenback and suppressed silver and gold.
China threatened to slap duties, varying from 5% to 25%, hitting $60 billion of American products. The tariffs would contribute to the current $50 billion in American products on which the Chinese government has already has slapped or told it would make this come true soon.
Besides this, the SPDR Gold Trust GLD headed south by 0.7%. At the same time, the iShares Silver Trust SLV posted a 0.3% dip.
In general, market sentiment is quite downbeat, as some market experts pointed out. They added that silver might be demonstrating some signs of turning a corner having dived along with gold. However, market experts stressed that silver would be capable of following through on some moderate upward momentum.
Other market experts drew attention to the fact that the entire precious metals space has turned out to be a very difficult area. They referred to pressure on prices, which have been dominating the sector of commodities.
In addition to this, September delivery copper futures went down by 1.2% hitting $2.731 a pound, having lost about 1.4% the previous week. October delivery platinum futures declined by 0.4% hitting $833.70 an ounce, having slumped by 0.6% for a week.
The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
The yellow metal reached the highest levels in 6 years amid the global risk aversion.
Pay attention to the FOMC meeting, where the rate cut is expected. Also, it is recommended to keep an eye on the oil prices, updates on trade talks between the USD and China and, of course, Brexit.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.