Expectations of further stimulus from the Federal Reserve and the Central Bank of China, caused a rise in oil prices and other risky assets, which manifested itself in the second half of the day.
At the beginning of the session, data showed China's manufacturing sector in August showed the fastest rates of decline over the last nine months. The manufacturing purchasing managers' index fell in August to a level 47.8 from 49.3 in July, largely due to lower production orders. Against this background, there was a possibility that the Chinese government may soon resort to stimulate economic growth.
At the same time, the reports submitted by the Fed showed the next phase of quantitative easing could begin quite soon, unless there is a significant improvement in the U.S. economy. However, members of the FOMC did not specify what incentives they are willing to use to help recovery. It has been speculated that the Fed could launch the third round of quantitative easing - known as QE3 - at the next meeting to be held in mid-September. However, the president of the Federal Reserve Bank of St. Louis, James Bullard said today that the Fed's minutes a bit "out of date".
Recall that in the next week the Federal Reserve will hold a symposium in Jackson Hole, where Federal Reserve Chairman Ben Bernanke may give a clue as to the new round of QE.
October futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now $ 97.69 per barrel.
October futures price of North Sea Brent crude oil mix is now $ 116.09 a barrel on the ICE Futures Europe Exchange.
Gold continued its winning streak, which has lasted for the seventh consecutive day, as the minutes of the Fed unexpectedly gave a signal that the central bank may take additional steps to stimulate the economy.
Recall that the price of gold has more than doubled, after the first time the Fed has resorted to quantitative easing in late 2008.
Minutes of the meeting of the Federal Open Market Committee showed that the central bank is likely to begin another round of stimulus fairly soon.
According to analysts, while the prospect of additional stimulus may have a positive impact on the value of gold in the short term, the key indicators, such as consumer spending, the level of production or employment, have grown since the last Fed meeting, indicating the stabilization of economic growth and, Thus, the increase in gold prices may be limited.
Gold futures rose today after data showed that the number of initial claims for unemployment benefits unexpectedly rose last week, suggesting that the recovery in the labor market is too slow to cause a decline in the unemployment rate.
Despite the high degree of uncertainty among investors in recent weeks, demand for gold has not diminished.
Reserves of gold in exchange-traded funds reached a record 71.24 million ounces, up more than 600,000 ounces this week, showing at the same time the largest weekly increase since the beginning of February.
The cost of the August gold futures on the COMEX is now 1671.7 dollars per ounce.
Change % Change Last
Oil $97.28 +0.02 +0.02%
Gold $1,657.00 +16.50 +1.01%© 2000-2026. Bản quyền Teletrade.
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