Crude Oil and Gold, a Global Outlook
- Gold is still facing a strong challenge from the US Dollar as haven for traders
- Given the above, there's apparently no rush to push costs significantly lower
- Crude oil caught a bid as the Saudi/Russia price war seems to be waning
Gold costs were down in Thursday's Asia Pacific exchange notwithstanding obvious worry regarding the spread of COVID-19, particularly in the United States, with the more grounded greenback tarnishing interest in the metal. Investors have set a precedent for preferring the US currency as a haven as opposed to gold during this particular global emergency, with the inflation dampening impacts of the coronavirus spread lowering hunger for the metal's hedging properties.
In any case, the basic offer for all haven assets, including precious metals remains unsurprisingly strong and is very unlikely to dwindle as financial specialists anticipate US unemployment claims information to come in later in the global day.
The astounding 3.2 million spike in initial claimants that was revealed in last week's release was arguably the most breaking news as of yet for the global economy, with financial specialists presently gearing up for even worse metrics in the upcoming data. The release will likewise bring updates on the private, Challenger work cuts series, where uplifting news are very unlikely as well.
Crude oil prices spiked after US President Donald Trump said he expected an early arrangement to transpire between Saudi Arabia and Russia that would put an end to their standoff in prices. A standoff which has crushed oil prices throughout March.
The two export behemoths' failure to come to terms on production cuts in light of the global pandemic has seen the business sectors overwhelmed with cheap oil that has no obvious final demand.
Trump said he had spoken with officials in both Moscow and Riyadh and thinks that an agreement to bring down production and raise costs will arrive within a couple of days.