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USA, a major factor behind gold growth and the fall in oil
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Loading...Following the Fed's report last night, gold rose sharply to its highest level in two months. The reason is that the Fed hinted at a delay in future interest rate rises. Fed members who are planning to delay the pickup are getting more and the market appreciates the possibility of raising interest rates around 40% by the end of the year. On the other hand, the news that two White House advisory groups are collapsing further prompted the gold upward. The noble metal is sensitive to the course of US interest rates and their sharp change leads to a lowering of the metal and a smooth transition have a positive price effect.
On the oil market, futures have fallen, although US oil reserves is less. The rate at which oil stocks in the US are falling indicates that shortened yields in OPEC countries are significant, but the market reflects the long-term effect, with no likely positive one. The decline stems mainly from the fact that US production continues to increase, while OPEC countries are not capable of more redundancies. On the other hand, increased summer fuel consumption has failed to offset high yields and global stocks remain high. All this leads to a drop in oil prices as the WTI is currently trading at around $ 46.70 a barrel. It seems that the market is focused on the increased state production, which grew by 79,000 barrels per day to 9.5m. Bpd.
Traders and investors turn their attention to the states as a major factor in the price of black gold and long-term sentiments remain negative.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Varchev Traders Read more:
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