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Thursday, 19 January 08:59 (GMT -05:00)



Stock and commodities markets

All that glitters is not gold


 

Bond yields have risen again, the euro zone has been hit by a fresh wave of doubt over its ability to manage the sovereign debt crisis and the UK finds itself in recession once again, so why has gold fallen $40 per ounce this week?
 
To quote Shakespeare, “All that glitters is not gold; often you have heard that told”. Traditionally gold thrives in turbulent markets since it is regarded by investors as a safe haven asset, but a surprisingly strong U.S. dollar has quelled the price of gold. In fact the strong greenback has done more than just negate the euro zone impact; it has caused the price to retreat. As the graph below shows, gold has been locked in a downward trend channel this week. This is a perfect example of how one cannot hope to predict the movement of gold by looking at only one dimension; its valuation is the product of many variables.
 
Spot Gold (Dollars per ounce) for the week beginning April 30 th
 
The decline represents gold’s biggest weekly drop for a month as it plunged towards the psychological $1600 per ounce level.
 
The dollar has strengthened against a majority of major currencies resulting in dollar-priced commodities, such as gold, becoming weighed down. Far from the U.S, in India, a weak Indian Rupee has made dollar priced commodities relatively expensive for buyers, curbing demand in the world’s largest consumer of bullion.
 
U.S. non-farm pay rolls data fell short of expectations on Friday which did see gold briefly jump to $1640 per ounce; although moving outside the trend channel it almost instantly retreated back within the range. Lower than expected figures will further fuel speculation of more quantitative easing by the Federal Reserve, which would hurt the dollar and help gold reverse its recent losses.

 

 

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Economic Calendar by Dukascopy 18.01.2017

Thursday brings the latest ECB statement, so let's take a closer look with the Economic Calendar.
Swiss Producer Price Index for December is up first at 8:15 AM. The Index has been growing for the past 3 months.
The closely watched ECB Monetary Policy Statement is out at 12:45 PM GMT, and make sure you tune in for the press conference 45 minutes later. President Draghi is sure to face plenty of questions about the latest developments which could cause some volatility in the markets.

Publication date: 18 January 10:10 AM

Economic Calendar by Dukascopy 17.01.2017

Tuesday brings the latest update on UK inflation, so keep watching this Economic Calendar to find out more.
In fact, the highly anticipated British December CPI is the first item on the schedule, and it's released at 9:30 AM. The annual inflation picked up speed in November, rising to a 2 year high.

Publication date: 17 January 09:42 AM

Economic Calendar by Dukascopy 16.01.2017

It's time for another Dukascopy Economic Calendar. Here's a rundown of the most important news releases scheduled for Monday, the 16th of January.

US markets will be closed for the Martin Luther King day, and the first item on the schedule comes one minute past midnight when the UK Rightmove House Price Index for January is released.

Publication date: 16 January 06:00 AM

Clean Energy Gets Popular, IEA Reports

In 2015, the amount of energy produced the “green” way outnumbered the amount of energy produced from fossil fuels in terms of growth for the first time in history. This is confirmed by the recent report released by the International Energy Agency (IEA).
 
Publication date: 21 December 01:55 PM

In 2017, Oil Market May See Both Deficit and Oversupply

The contemporary global market of crude oil may well go from oversupply to seeing a deficit in 2017. This is what several respected experts working for the International Energy Agency thing on the matter. For starters, this scenario need a major trigger in the form of signing the promised oil production cap agreement reached verbally by OPEC members in late September in Algeria.

 

 
Publication date: 17 November 05:35 PM

Oil Prices Get Ready For Another Plunge

Crude oil and the Russian Ruble have found themselves at 3-month lows. There are several reasons for that.  In particular, OPEC is reported to be producing record-high amounts of crude oil despite the recent verbal agreement to cap and even cut their production in the near future.
 
Publication date: 16 November 09:01 AM

Kudrin Says Oil Will Cost Under $30/b Over the Next 20 Years

Former Russian Minister of Finance Mikhail Kudrin says that crude oil is going to see the period of ultra-low prices over the next 20 years. One of the most influential and respected Russian financiers specifies that crude oil is not going to cost more than $30 per barrel in the future.
 
Publication date: 14 October 05:11 AM

OPEC's Oil Production Saw Record Highs In September 2016

According to the recent research conducted by Bloomberg, OPEC’s oil production reached a new high in September 2016. To be more specific, OPEC is reported to have been producing 33,75 million barrels a day over the reporting period.
 
The record high production of crude oil within the scope of cartel has to do with considerable production growth seen in Libya and Nigeria over the reporting period. For those of you who don’t know, the similar data taken for the previous month report 33,24 barrels a day, which means that OPEC’s oil production increased by as much as 170 thousand barrels a day in a matter of 4 weeks.
Publication date: 07 October 11:34 AM

OPEC Cuts Oil Production, Oil Prices Go Up

Despite all the skepticism around yesterday’s unofficial OPEC summit, the members of the cartel did finally manage to agree on production cuts for the benefit of higher oil prices as well as a more stable and stronger market of crude oil. Apparently, the breaking news instantly sent oil prices higher all around the globe.

 

 
Publication date: 29 September 04:30 AM

Samsung Loses $22 Billion of Market Cap in 2 Days

Samsung, the world-famous manufacturer of computer electronics from South Korea, saw its market capitalization shrink by as much as over 22 billion dollars in a matter of just 2 trading days. This happened amid a scandal with the new smartphone named Samsung Galaxy Note 7, Masterforex-V Academy reports.

Publication date: 13 September 05:29 AM