Gold Price Bottom Is Clear, $1,500

On September 4th gold futures closed at the highest value this year trading to an intraday high above $1565 and closing at $1560 per ounce. Immediately following gold futures reaching a new price high for the year it would close lower for four consecutive trading days plunging below $1500 as it traded to an intraday low of $1492 on September 10th. From that point forward gold began a period of consolidation as it traded around $1500 which continues to this day.Between September 10th and September 19th gold would trade as high as [read more]

British Pound Jump On EU Juncker Is Doing Everything To Avoid No Deal Brexit

The British pound surged on Friday after European Commission President JeanClaude Juncker said he is confident a Brexit deal will get passed. The pound rose 0.62% to 1.25594 against the dollar on Thursday  I think we can have a deal Juncker said in an interview with Sky News. I am doing everything to have a deal because I dont like the idea of a nodeal because I think this would have catastrophic consequences for at least one year.The British pound jumped on Thursday after European Commission President JeanClaude Juncker said he is confident [read more]

Oil Price Waiting For Washington And Saudi Response To Drone Attack

It was a wild ride but oil prices fell again on Wednesday pushing them back near levels seen earlier this month. Despite the largest supply outage in oil market history the spike could prove to be shockingly brief.Saudi energy minister Prince Abdulaziz bin Salman soothed market fears on Tuesday when he stated that roughly 40 percent of the disrupted capacity at Abqaiq was back online and that the facility would return to preattack levels by the end of the month. It appears to be a startlingly swift rebound for such a massive attack.The [read more]

Gold Closed Lower Wednesday After Fed Rate Cut, Here's Why

Gold price closed lower Wednesday after the Federal Reserve announced 0.25& cut to a key interest rate lifting the dollar and pressuring prices for the dollardenominated Gold.Ahead of the Fed news spot Gold rose almost $10 to $1510.84 an ounce. Shortly after the Fed decision gold price edged down to $1484.31.Gold market already price in the Fed announcement a widely anticipated quarter percentage point cut to the fed funds interest rate to 1.75%2%.Against that backdrop the U.S. dollar index a gauge of the greenback against [read more]

Fed Cut Rate To 1.75%-2.00% And Said More To Come This Year

The Federal Reserve Wednesday lowered its benchmark interest rate by a quarterpoint and expressed an openness to more easing.In a move to support the economy in a time of greater uncertainty about the outlook the Fed reduced its benchmark shortterm rate to a range between 1.75% and 2%. Wednesdays cut was the second in two months. Fed officials think a few rate cuts will help the economy weather the uncertainty caused mainly by President Donald Trumps trade war with China.There were [read more]

Gold Sitting On The Fence Ahead Of Fed Rate Decision

Gold prices were little changed on Wednesday as investors maintained a cautious stance ahead of the conclusion of U.S. Federal Reserves twoday meeting where policymakers are expected to cut interest rates.Lower U.S. interest rates put pressure on the dollar and bond yields whilst significantly boosting the appeal of assets such as gold.Gold prices have climbed over 19% since touching a 2019 low of $1265 an ounce in early May supported by an increasingly dovish stance from major central banks escalation in the U.SChina trade war and Middle East tensions.Technical$1520 [read more]

Oil Price Back Below $60 After Saudi Reassurance To The Market

Oil extended its pullback after a spectacular start to the week on signs Saudi Arabia is restoring production following a debilitating weekend attack on key installations.Oil price open just a little bit higher Wednesday after tumbling 5.7% Tuesday as Saudi Aramco said it had revived 41% of capacity at a key crudeprocessing complex days after a devastating aerial attack that wrecked vital equipment and rocked global energy markets. The global oil benchmark which jumped to $63.35 a barrel in reaction to the disruptions now trading at $58.88.The [read more]

Fed To Cut Rate Wednesday Or Asia Thursdays (02:00 HK/SG)

The Fed is expected to cut interest rates for the second time in a decade Wednesday and also point to some improvement in the U.S. economy.The Fed however is unlikely to tip its hand on future interest rate cuts.The Fed is expected to cut interest rates for the second time in a decade Wednesday but Fed Chairman Jerome Powell is unlikely to deliver the message markets want to hear on plans for future rate cuts.A cut of 25 basis point taking the fed funds target rate range to 1.75 [read more]

Gold Support By Geopolitical Uncertainly But Technically Need A Correction

Geopolitical and economic uncertainty are helping gold maintain support above $1500 an ounce and while there is room for prices to move higher in the short to mediumterm one bank is not betting on higher prices in the longterm.In a report published last week analysts at Natixis increased their gold forecast for the year and see higher prices for the first half of next year but expect that the precious metal will struggle in the second half of 2020.Bernard Dahdah precious metals analyst at the French Bank and author [read more]

Expectation Increases  Suddenly For Fed Rate To Stay

Markets generally expect the Federal Reserve to approve a quarterpoint rate cut this week.Chances are rising though of no move with markets assigning a 34% probability of the Fed staying put.Better economic data a thawing in U.S.China relations and firming inflation a contributing to the less dovish view.Surging energy prices Monday helped add to sentiment that the Federal Reserve suddenly might not be in such a hurry to cut interest rates.While markets still see the central bank lowering its benchmark overnight lending rate by a quarter [read more]