Find out the main drivers for this week
Gold surges to fresh 9-month maximums
On Tuesday, gold managed to rally because traders awaited the publication of the minutes from the recent Fed policy gathering with hopes for them to confirm the major financial institution’s dovish policy stance.
On the Comex exchange, April delivery gold futures managed to jump by up to 1.38% concluding the trading marathon at $1,340.25 a troy ounce, which is its best value since May 14.
The major US bank is expected to uncover the minutes of its January 30 gathering when it left interest rates intact and promised to be patient with further interest rate lifts, dropping its guidance that further gradual rate lifts will be required.
The US major financial institution also told it could change the tempo of its balance sheet reduction.
As some financial experts pointed out, Fed policymakers are actually coming to a compromise having reversed their course 180 degrees.
What’s more, so-called quantitative tightening that Fed Chair Jerome Powell is used to mentioning as ‘balance sheet runoff’, isn’t on autopilot any longer.
In fact, the dovish shift in tone to the US major bank’s message suggests a longer pause in rate lifts that in turn diminishes the opportunity cost of holding non-interest bearing yellow metal.
As for other metals, palladium futures managed to tack on due to the fact that forecasts that demand will head north in 2019 as stricter emissions standards ramp up demand for the metal used in catalytic converters. Eventually, this commodity inched by up to 3.24% being worth $1,452.75 an ounce, which appears to be a fresh record maximum.
Combined with with supply-side issues, the market will be in rather a sizeable deficit in 2019 and potential for better-than-anticipated demand from China will have that tightness exacerbated, as some experts stressed.
The price for WTI has risen to its highest levels since the beginning of May.
On Wednesday, the yellow metal managed to extend gains for the fourth consecutive day, while other metals are going down…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.