Future: Gold Prices Make Slight Rise on Trade Worries
According to Wall Street Journal reports, China is not possible to continue its trade talks with the United States until after the mid-term elections in November.
Moreover, the Wall Street Journal said that the proposed visit of Vice Premier Liu He that was originally scheduled for this week is also canceled.
Based on the Comex division of the New York Mercantile Exchange, the December delivery of gold futures made a slight increase rise 0.02% to $1,201.50 a troy ounce.
Bank of America Merrill Lynch analysts said that the gold is expected to surge next year as trade worries and concerns on the ongoing US budget deficit would inflict damages on the economy of the country.
Francisco Blanch, head of global commodities and derivatives research, predicted that gold prices may reach $1,350 an ounce next year.
“We’re still pretty constructive longer term on gold. In the short run, the effects of the strong dollar, higher rates dominate. But in the long run, a huge U.S. government budget deficit is pretty positive for gold,” he said.
Earlier, US President Donald Trump implied that the trade conflict will not end any time soon and even suggested that it’s time to “take a stand on China.”
“Eventually the trade wars are going to come back to bite the U.S. It could take longer, it could take shorter, eventually it’s going to happen, but maybe the Fed acknowledges it sooner, which is what people are going to be looking for in terms of getting more bullish on gold. We know that trade wars are not good for the economy,” Blanch said.
FinanceBrokerage – Future: Oil Increases 2% in Narrowing Markets
On Monday, oil prices increased 2% in narrowing markets which are due to Washington’s fresh sanctions against Iran. Meanwhile, some traders made a prediction that there would be a spike in crude to $100 per barrel.
Brent crude futures surged to the highest level at $80.43 per barrel and increased $1.57, or 2 percent, at $80.37 per barrel.
Meanwhile, the U.S. West Texas Intermediate crude futures made an increase of $1.28, or 1.8 percent, to $72.06 a barrel.
The US commercial crude oil inventories recorded its lowest level since early 2015. Meanwhile, the latest subdued US drilling activity paves a way towards a slowdown although output steadies at 11 million barrels per day.
On Monday, Trafigura and Mercuria said that there’s a possibility that the Brent could make an increase of $90 per barrel by Christmas and pass $100 in early 2019. This is amid the tightening of markets as the sanctions of the United States against Iran are placed on November.
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