Gold 2045,26
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EURUSD 1,1881
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DJIA 27122,50
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OIL.WTI 42,19
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DAX 12621,04
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At the beginning of the trading session on Wednesday, oil quotations rose sharply. Maximum daily candlestick touched the 200-day moving average. Then speculators got scared and allowed a small pullback by the end of the trading session. Let’s find out what’s going on with black gold.
OIL.WTI
Commercial oil reserves in the U.S. fell by 7.3 million barrels last week, according to the U.S. Department of Energy weekly report. Experts interviewed by Bloomberg expected oil reserves to decline by only 3.4 mn barrels.
On the other hand, the US stock market showed another confident day of growth, also pushing the demand for black gold. Speculators waited for the optimal point to break through the range of the last 2 months and break the bear’s footprint.
Hopes for a faster recovery of the world economy make some experts talk about the price of $50 per barrel by this autumn. We believe that such expectations are still unfounded. On the one hand, the holiday season will end in autumn, which is currently increasing the demand for fuel. On the other hand, a second, even more powerful wave of coronavirus may come in autumn.
Gold
Breaking through the $2,000 per troy ounce on Tuesday, the gold doesn’t think to stop. On Wednesday, the yellow metal successfully withdrew its stops at the level of 2050$. It is logical to assume that the level of $2100 will be taken in the coming days. Moreover, it will not be the new buyers of gold who will be to blame, but rather the sellers of derivatives, who panically liquidate their positions.
Indices
The ISM Manufacturing Index for July came out much better than expected. This is exactly what we wrote about last week. The U.S. economy is falling very fast, but it is also starting to grow rapidly. Positive news pushed the S&P 500 index by another 1%. Although August is considered to be not a good month for buying stocks, this particular month is likely to be an exception. And we will see another historic high on the S&P 500.
What’s waiting for us today?
08:00 Bank of England decision on interest rate
08:00 Minutes of the meeting of the Bank of England at the interest rate
13:30 Speech by the Governor of the Bank of England, E. Bailey.
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