Yesterday’s private survey showed larger-than-expected cut in oil output.
Gold tacks on geopolitical risks
On Wednesday, gold prices rallied. The demand for defensive assets headed north due to concerns about the continuing trade disagreements between the US and China as well as the possibility of an American military strike against Syria.
June delivery gold futures soared by 0.13% on the Comex exchange showing an outcome of $1347.6 per troy ounce.
On Tuesday, Chinese President Xi Jinping along with US President Donald Trump made a series of conciliatory statements on bilateral trade. Market participants hope that it will open the way to negotiations, which will prevent a trade conflict between the world’s two leaded largest economies.
However, market participants are still apprehensive due to reports that the talks, which have just started have been suspended.
Instability stepped up in markets, the US and its Western allies are discussing the possibility of a military strike against Syria in response to the alleged chemical attack carried out on the previous weekend. Russia urges the United States to abandon military action amid growing tensions between the two countries.
The US dollar exchange rate went down before the publication of the minutes of the last Fed gathering as well as inflation data in the United States.
The US dollar index, traditionally gauging the purchasing power of the major US currency to the trade group of six main rivals, headed south by 0.09% coming up with a reading of 89.24.
Demand for gold is tacking on during geopolitical tensions or instability in financial markets, and the depreciation of the evergreen buck makes gold traded in that asset more affordable for buyers of other currencies.
As for bidding of other precious metals, silver futures went down by 0.19% on the Comex exchange showing an outcome of $16.565 per troy ounce. Additionally, platinum futures soared by 0.16% hitting $934.60.
Copper futures slumped 0.45% reaching $3,123 per pound.
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.
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.
The USA will publish the level of retail sales and core retail sales on September 13, at 15:30 MT time.