- Analytics
- News and Tools
- Market News
Analytics, News, and Forecasts for CFD Markets: raw news — 23-09-2020.
FXStreet reports that strategists at Natixis look at periods when gold prices have risen significantly and identify four usual explanations for a rise in the yellow metal.
“The first explanation is expected inflation, which drives savers into gold as a safe-haven against a loss of the value of money. The rise in the gold price of 1973-75 and 1978-81 can be attributed to inflation.”
“The second usual explanation is a depreciation of the dollar: gold is then a substitute for the dollar as a reserve currency. The rise in the gold price in 1973 to 1975, 1978 to 1981, 1987-88, 2002 to 2012 and 2020 can be attributed to dollar depreciation.”
“The third explanation is a rise in risk aversion and, as a result, an equity market decline, resulting in investors switching from equities to gold. The rise in the gold price can be linked to the fall in stock market indices in 1987-88, from 2009 to 2012 and in 2020.”
“A fourth explanation is an excessive increase in the quantity of money, which leads to a loss of confidence in money to store savings. This can be the quantity of money in the United States (in dollars) or in the OECD as a whole. Rapid money supply growth may explain the rise in the gold price from 2009 to 2012 and in 2019-2020.”
The U.S. Energy
Information Administration (EIA) revealed on Wednesday that crude inventories
fell by 1.639 million barrels in the week ended September 18. Economists had
forecast a decrease of 2.325 million barrels.
At the same
time, gasoline stocks dropped by 4.025 million barrels, while analysts had
expected a decline of 0.648 million barrels. Distillate stocks plunged by 3.363
million barrels, while analysts had forecast a gain of 1.020 million barrels.
Meanwhile, oil
production in the U.S. reduced by 200,000 barrels a day to 10.700 million
barrels a day.
U.S. crude oil
imports averaged 5.2 million barrels per day last week, up by 160,000 barrels
per day from the previous week.
FXStreet reports that gold extends its decline below $1900 but the yellow metal weakness stays seen as a corrective by the Credit Suisse analyst team.
“Gold extends its consolidation/correction following the move to our base case objective of $2075/80 in August for a test of a cluster of flagged supports at $1897/37, which includes the 23.6% retracement of the rally from the 2018 low. We look for this to continue to hold to maintain the sideways range. Should weakness extend though, we would see scope for a deeper setback to $1765, potentially $1726.”
| Raw materials | Closed | Change, % |
|---|---|---|
| Brent | 41.62 | -0.05 |
| Silver | 24.39 | -1.26 |
| Gold | 1900.181 | -0.63 |
| Palladium | 2227.32 | -1.92 |
© 2000-2026. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
