Gold Hits Two Week High On US-China Trade Tensions

While Fed Rate decision gave U.S Greenback a boost in momentum, the boost faded shortly as reports hit the market that President Trump was preparing to put tariffs on billions of dollars of Chinese goods as soon as Friday which greatly impacted US dollar’s momentum giving dollar bears momentum against major global currencies. XAUUSD pair hit a high of $1309.52 and is currently trading at $1308 price handle. Gold is expected to continue its bull run and may see greater highs as Analysts predict a further surge in dollar value if ECB confirms QE tapering during its meeting later today.

The U.S-Chinese trade war tension has taken center stage for US Greenback denominated instruments and current proceedings of geopolitical and global economic events have given all major safe-haven instruments a boost in value. Silver one of the most common safe-haven instrument also saw headway from this decline in the dollar as XAGUSD pair crossed above $17 for the first time in last 50 days. XAUUSD pair is currently trading at $17.15 after hitting the day’s high at $17.175.

Oil prices eased on Thursday dragged down by rising output and a decline in China’s refining activity, although strong fuel consumption in the United States and a drop in its crude inventories provided some support. US Crude Oil WTI is continuing to trade at a $10 discount when compared to international crude oil benchmark Brent Crude. WTIUSD is currently trading at $66.73 while Brent Crude was at $76.47. Prices were pulled down by another rise in US oil production, which hit a weekly record of 10.9 million barrels per day (bpd) last week, according to the Energy Information Administration (EIA) on Wednesday. Investors continue to look forward to OPEC summit as Trump continues to throw tantrums despite Saudi Arabia & Russia increasing their Crude Oil Output.