|Day's range||1,463.30 - 1,485.30|
(Bloomberg) -- Goldman Sachs Group Inc. said investors should diversify their long-term bond holdings with gold, citing “fear-driven demand” for the precious metal.“Gold cannot fully replace government bonds in a portfolio, but the case to reallocate a portion of normal bond exposure to gold is as strong as ever,” Goldman analysts including Sabine Schels said in a note Friday. “We still see upside in gold as late cycle concerns and heightened political uncertainty will likely support investment demand” for bullion as a defensive asset.The precious metal climbed to a six-year high in September as the Federal Reserve cut borrowing costs and the total pile of debt yielding less than zero climbed to a record $17 trillion, boosting the appeal of non-interest bearing gold.Hedge funds and other large speculators boosted their bullish bets on the precious metal by 8.9% in the week ended Dec. 3, government data showed Friday. That’s the biggest gain since late September.Gold has fallen more than 6% from the peak to close at $1,460.17 in the spot market Friday.While Goldman said the correction on bullion prices has further room to run, the bank is still sticking to its forecast prices will climb to $1,600 over the next year.(Adds hedge fund position in fourth paragraph.)\--With assistance from Marvin G. Perez.To contact the reporter on this story: Yvonne Yue Li in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Luzi Ann Javier at email@example.com, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Saudi Arabia spearheaded a deal on Friday that will see the OPEC+ group of oil producers commit to some of the sector's deepest output cuts in a decade aiming to avert oversupply and support prices. Saudi with OPEC peers and allies led by Russia backed a plan that could see cuts of as much as 2.1 million barrels per day (bpd), Saudi Energy Minister Prince Abdulaziz bin Salman said. Brent oil rose 2% to more than $64 a barrel after the announcement.
The S&P; 500 broke down significantly during the week, reaching down towards the 3075 level before bouncing significantly to form a massive hammer. At this point in time, it’s likely that the market will continue to go much higher.
Silver markets initially tried to rally during the week but ran into a significant amount of resistance at the previous uptrend line, showing signs of resistance. This is a horrifically negative sign.
Crude oil markets rally during the week, testing the top of the overall consolidation as OPEC produces more cuts. That being said though, the 500,000 barrel a day cut has essentially been priced into the market, so we have not been able to break out of the consolidation range.
Gold markets got crushed during the day on Friday as a major “risk on” trade has come into play after a strong job summer. Having said that, we are still above significant support.
Investing.com – Gold has a new nemesis in the form of U.S. jobs numbers to beat it down, while palladium proved its record-making streak just cannot be stopped.
(Bloomberg) -- Just when it looked like gold’s rally had gotten back on track, the U.S. payrolls report came along.The number of jobs added to the economy jumped 266,000 last month, the most since January, according to a government report Friday that topped all estimates in a Bloomberg survey calling for 180,000 jobs.Gold has struggled to sustain recent rallies as resilient U.S. economic data and bets on progress toward a U.S.-China trade deal limit demand for the metal as a haven. That weakens the case for more cuts on U.S. borrowing costs, further damping the appeal of the non-interest-bearing precious metal. Prices are down more than 6% from a six-year high reached in September.The jobs report “is a blow-away number: It means there will be no more interest-rate cut, which is bearish for gold,” says Phil Streible, senior market strategist at RJO Futures.Bullion futures for February delivery fell 1.2% to settle at $1,465.10 an ounce at 1:30 p.m. on the Comex in New York. Prices slipped 0.5% for the week.The jobless rate dipped to 3.5%, matching the lowest since 1969. Average hourly earnings climbed 3.1% from a year earlier, exceeding projections, and the prior month was revised higher.Earlier Friday, equities rose after China said it’s in the process of waiving retaliatory tariffs on imports of U.S. pork and soy by domestic companies. That’s a procedural step that may also signal a broader trade agreement with the U.S. is drawing closer.“China is waiving some tariffs, which means we’re close to an agreement,” also weighing on gold, Streible said.To contact the reporter on this story: Yvonne Yue Li in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Luzi Ann Javier at email@example.com, Joe Richter, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Canadian dollar is flat on Friday, but that could change in the North American session. Canada and the U.S. will both release key employment numbers at 15.:30 GMT.
Based on the early price action and the current price at 1.1094, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the downtrending Gann angle at 1.1111. This angle stopped the buying earlier in the session.
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The British pound has taken a breather on Friday, but is up almost 2 percent on the week. The pound has gained ground as the Conservatives continue to hold a lead in election polls. The Aussie and NZ dollar have also posted sharp gains against the U.S dollar this week.
Investing.com – Prices of the safe-haven gold fell on Friday in Asia as traders continued to monitor Sino-U.S. trade news.
Uncertainties related to the United States-China trade talks, global economic slowdown and downbeat view for key sectors are triggering demand for gold.
Investing.com -- Gold prices edged higher on Thursday but were essentially rangebound in the absence of major new developments in the U.S.-China trade war.
VIENNA/LONDON (Reuters) - Oil producers led by Saudi Arabia and Russia agreed on Thursday to cut output by an extra 500,000 barrels a day in the first quarter of 2020 but stopped short of pledging action beyond March. The countries involved pump over 40% of the world's oil, and their new combined cuts amount to 1.7 million bpd or 1.7% of global production. A panel of energy ministers representing the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia recommended the deeper cut on Thursday, Russian Energy Minister Alexander Novak said.
If OPEC and its allies decide to cut production more than expected then look for a breakout over the last main top at $58.74. The daily chart shows there is plenty of room to the upside with the next major target the September 16 main top at $61.48.
The odds are that it’s not, and that we’re actually seeing a business-as-usual kind of situation. That is if one knows the details of the gold trading business.