Gold Continues Positive Movement for Third Consecutive Market Session on Trade War Woes

Gold extended gains on Friday as the dollar fell against the yen after a report suggested that U.S. President Donald Trump would next take up trade issues with Japan, while investors feared another round of Sino-U.S. tariffs any moment. The dollar declined against the yen following a CNBC television report on Thursday that Trump told a Wall Street Journal columnist he might take on trade issues with Japan. The stronger yen versus dollar is leading to some buying in gold. The recent low of around $1,160 in August serves as strong support for gold in immediate Future. As of writing this article, Spot Gold XAUUSD is trading at $1201.56 an ounce up 0.12% on the day while US Gold Futures GCcv1 is up $1206.50 an ounce up 0.19% on the day.

Investors Await Updates on Sino-U.S Trade Tariff’s Before Placing Major Bets

The next moves will mostly depend on the employment data tonight and the September Federal Reserve meeting. But it mostly looks like gold is slowly coming up and the dollar is coming off as gold is too oversold and the dollar has been overbought. The situation should be similar for all US Dollar denominated precious metals which suffered at hands of US Dollar. Another big worry for investors was the public consultation period for proposed U.S. tariffs on an additional $200 billion worth of Chinese imports which ended at 0400 GMT Friday and announcement on Chinese tariffs are expected to be made within today’s market hours. Spot Silver XAGUSD is trading at $14.15 an ounce up 0.05% on the day.

Oil prices held steady on Friday, as the market balanced a fall in U.S. crude inventories to the lowest levels since 2015, with Sino-American trade tensions and economic weakness from emerging markets. U.S. commercial crude oil inventories fell by 4.3 million barrels to 401.49 million barrels in the week to Aug. 31, the lowest since February 2015, U.S. Energy Information Administration (EIA) data showed on Thursday. Despite that, analysts said prices were curbed by a rise in refined product stocks and a relatively weak U.S. peak fuel consumption season this summer, known as the driving season. Meanwhile in the middle east, Venezuela has set up a commission that will be working to reshuffle and reorganize its state oil firm PDVSA in the next few months in the latest attempt by Venezuelan govt to show that it is trying to revitalize its dying oil industry. While the governor of a southern Yemeni province pumping 100,000 bpd—half of Yemen’s total oil production—threatened on Thursday to suspend oil shipments from the region if the internationally recognized Yemeni government doesn’t meet the demands of protesters in Yemen’s south. Spot Crude WTIUSD is trading at $68.36/b up 0.12% on the day.