Yesterday’s private survey showed larger-than-expected cut in oil output.
Gold slumps as greenback rallies
On Thursday, the yellow metal slumped in Asia due to the fact that the evergreen buck jumped on uncertainties around China-US trade negotiations and Brexit.
On the Comex exchange, gold futures dived by about 0.1% hitting $1,316.25 an ounce.
As for the USD index futures, they headed north, approaching a two-week maximum, thus making the dollar-denominated yellow metal less affordable for investors who hold other currencies.
Uncertainties on Brexit are believed to have supported the evergreen buck. On Wednesday, British Prime Minister Theresa May told that she’d reside if UK lawmakers back her withdrawal deal.
Various media guessed May is anticipated to bring a third vote to the British legislative body in the coming days, even after May openly confessed she lacks support for putting her Brexit proposal to such vote.
Great Britain has time until April 12 to come to a compromise with the EU on Brexit that would require ratification by the EU. Without a deal, Great Britain could ask for a prolonged extension or even a departure leave without a deal.
Market participants are also paying much attention to further news on the China-US trade front because statesmen gather in China this week for another round of trade negotiations.
In addition to this, the American yield curve inversion gained some residual focus. However, it had a minor impact on the yellow metal today.
Aside from that, the American 10-year Treasury gain went down below that of the three-month bill for the first time since 2007 the previous week, thus indicating that an American meltdown might be approaching. It came against the backdrop of the publication of dismal economic data from America and worldwide and also a downgraded American economic outlook from the major US bank.
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.