New Zealand Markets closed

Precious Metals Hover Near One-Year Lows As Dollar Faces Pressure Post Trump’s Comment

Colin First

Gold prices eased for a sixth straight session on Friday, hovering near a one-year low hit in the previous session, as the dollar traded close to a one-year high. XAUUSD was down 0.3% at $1,218.72 an ounce at 0352 GMT. In the previous session, it fell to its weakest since early July last year at $1,211.08 an ounce. U.S. gold futures were down 0.5% at $1,218.30 an ounce. The current price actions displays a scenario were major triggers would repeatedly fail to bring gold back on Bull Run in near future trading session. While US Greenback wavered slightly post President Trump’s comment on Fed rate hikes, dollar remains strong in broader market except against EURO and Japanese Yen which gives positive outlook for Dollar in medium to long term. The dollar index which measures the greenback against a basket of six major currencies, stood at 95.127. It dropped from a one-year high on Thursday after U.S. President Donald Trump expressed concern for the third time about the currency’s strength and the Federal Reserve’s interest rate increases.

Gold Tries to Bounce

Silver made some positive stride albeit trapped in wider band with price action trapped between $15.15 and $15.50 price levels. XAGUSD is currently trading at $15.42 up 0.79% and is expected to maintain movement well inside the wider price band as trading session comes to close for the day. Investors focus now turns towards a meeting in Buenos Aires where financial leaders of the world’s 20 biggest economies come together for the first time since China and the United States put tariffs on $34 billion of each other’s goods and the outcome of this meeting will set volatility for trading session that begins next week.

Gold Hourly

Crude oil futures were mixed during mid-morning trade in Asia Friday, reacting to comments by Saudi Arabia on OPEC production and Norway restarting the Knarr oil Field. At 10:20 am Singapore time (0220 GMT), ICE September Brent crude futures were down 4 cents/b (0.06%) from Thursday’s settle at $72.54/b, while the NYMEX August light sweet crude contract was 13 cents/b (0.19%) higher at $68.59/b.

Saudi Arabia’s oil exports will be little changed in July and will fall in August, the country’s OPEC governor said Thursday. Saudi crude exports in July will be largely stable from June, but will decline by about 100,000 b/d in August, Saudi’s OPEC governor Adeeb al-Aama said in a statement. “Saudi Arabia only exports barrels that are earmarked to match confirmed lifting requests by end users and does not try to push oil into the market beyond its customers’ needs,” he said in the statement. Just as Saudi Arabia would not like to see unmet customer demand, an oversupplied market repels potential investment in the oil industry, curtailing future supply and contributing to volatility – he added.  ANZ analysts said in a note: “Investors did find some solace in comments from Saudi Arabia that it would not oversupply the market indiscriminately.” In Norway, offshore workers have agreed to call off a 10-day strike after reaching a pay deal with employers, the Norwegian Ship owners’ Association said Thursday, ending the threat of a production plunge. More than 600 offshore workers across nine facilities went on strike July 10, shutting in the Shell-operated Knarr field, which produced 23,000 b/d of liquids over the first four months of the year. WTIUSD is currently trading at $69.78 up 0.55% on the day.

This article was originally posted on FX Empire