What To Expect Next For Gold And Oil, Plus A Dramatic Week For Key Markets
What To Expect Next For Gold And Oil, Plus A Dramatic Week For Key Markets from King World News
Here is a very important look at what to expect next for gold and crude oil, plus a dramatic week for key markets.
Gold, Oil, And A Dramatic Week
September 22 (King World News) – Ole Hansen, Head of Commodity Strategy at SaxoBank: “A dramatic week in crude oil saw the Brent futures contract jump the most on record before deflating on continued growth and demand concerns. Gold traded higher but within the tightest range in two months, despite heightened geo-political risks, the second US rate cut in this cycle and a softer dollar. Low level trade talks between US and China received attention, with the market quietly hoping for a breakthrough when senior-level negotiations continue in earnest next month.
The year-long trade war was mentioned by the OECD as its main reason for once again lowering the outlook for global growth in 2019 and 2020. It said that global growth momentum had tumbled toward lows last seen during the financial crisis, with protectionist policies taking an increased toll on confidence and investments. Industrial metals traded down but off their lows after China, the world’s biggest metal consumer, lowered borrowing costs in a bid to ease liquidity concerns.
Despite the warning from OECD, the Bloomberg Commodity Index – which tracks a basket of major commodities in energy, metals and agriculture – traded higher for the first time in four weeks. This as geopolitical concerns lifted crude oil and gold thereby offsetting the mentioned losses among industrial metals and some agricultural futures. Cocoa continued its September rally on indications of lower supply from the Ivory Coast and Ghana. The outbreak of the deadly swollen-shoot disease in Ghana has cut its production and the market worry is that it may spread to the Ivory Coast.