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 slips ahead of major data
On Monday, gold was nearly intact, decreasing a bit because traders waited for a batch of major American economic data along with an appearance from Fed Chair Jerome Powell.
On the Comex exchange, April delivery gold futures tumbled by 0.16% being worth $1,330.65 a troy ounce, although still keeping to a three-month maximum of $1,349.80 recorded the previous week.
After American leader told that he would postpone the imposition of more levies on China’s goods beyond the initial March 1 deadline, and wanted to meet with Xi Jinping to come to a compromise, China’s state news agency Xinhua stressed that fresh uncertainties might show up during the final stage of the trade talks.
The given news turns out to be a double-edged sword for the yellow metal. Well, while greater risker appetite underpins the currencies of emerging countries whose major financial institutions are among the key buyers of this precious commodity, the outperformance of risky assets such as stocks could back some outflows from safer ones such as bonds and the yellow metal.
Financial markets actually expect the Fed Chair to underpin the very idea of an early end to the major bank’s balance sheet runoff.
Aside from that, market participants are eager to get familiar with the fourth-quarter gross domestic product expected to come out on Thursday. By the way, te release of that report was postponed by the 35-day government shutdown.
This week other economic data releases include housing starts as well as building permits on Tuesday. As for data on personal consumption expenditure, the US major bank’s primary inflation indicator, along with manufacturing and consumer sentiment are expected to come out on Friday.
As for other metals, silver futures declined by 0.26% hitting $15.873 a troy ounce.
For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.