The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
Gold tacks on
On Monday, gold managed to rally in Asia because recession worries sparked safe-haven demand.
As a matter of fact, on the Comex exchange, gold futures jumped by 0.3% being worth $1322.05. The previous week the yellow metal demonstrated its weekly profit in a row, soaring by up to 1%, which is the most impressive outcome since early February.
Additionally, the spread between 3-month Treasury bills as well as 10-year note gains reversed for the first time since 2007 right after American manufacturing data missed forecasts. The given reverse of the yield curve is generally considered to be a major gauge of recession.
In fact, the news sent global shares down, with Japan’s Nikkei 225 diving over 3% on Monday. As for the Hang Seng Index, it decreased by 2% in Hong Kong.
Additionally, the yellow metal headed north because the appetite for safer assets tacked on.
Market experts told that price action in the yellow metal keeps backing their view that expected data deterioration will assist to cause a gold leap because interests rates keep diving against the backdrop of a decelerating global economy.
The major US bank kept interest rates intact earlier this month and stressed that there wouldn’t be any further rate lifts in 2019, although in December the Fed had hinted at two probable rate lifts.
In addition to this, the uncertain Brexit situation is going to be closely watched. Friday’s deadline for Great Britain to depart from the European bloc has been pushed back by a couple of weeks to April 12
If lawmakers don’t want to approve the deal for the third time, then a number of options, such as a no-deal Brexit, will become available.
The yellow metal reached the highest levels in 6 years amid the global risk aversion.
The yellow metal could not stay for a long time near the $1,401 level.
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