The organization of the petroleum exporting countries (OPEC) and non-OPEC oil producers (Russia) will meet on July 1-2.
Yellow metal rallies against the backdrop of risk aversion
On Wednesday, the yellow metal managed to extend gains for the fourth consecutive day, while other metals are going down. Risk aversion definitely dominated the market against the backdrop of the trade conflict between China and America.
However, on Thursday, other precious metals, including platinum, palladium, silver, and copper are extending losses.
In addition to this, US-China trade-war negotiations, the market is also closely watching the economic calendar, in particular, the CPI in China as the next crucial event on Thursday. What’s more, traders will also wait for the GDP report in Great Britain as well as inflation numbers in American on Friday.
It feels like China has revised a long period of talks between the two leading economies because China backtracked the trade agreement with America, as some sources familiar with the situation uncovered.
A diplomatic cable from the Chinese cabinet with an almost 150-page draft trade pact with amendments, which undermined core American demands came on Friday. In fact, it provoked American leader’s tweet on Sunday.
Eventually, the changes would impact trade secrets, intellectual property, forced technology transfers, currency manipulation, competition policy as well as financial services.
It would make American leader proceed with more levies to China as an attempt to get them back to what both trading partners agreed earlier. Risk aversion pushed the financial markets to safe-haven assets, in particular, the yellow metal.
The yellow metal is benefiting from the risk aversion environment because of the trade war between America and China. Gold is reporting its fourth winning trading day in a row.
As a matter of fact, XAG/USD hit 14.93.
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