(10 September 2020)DAILY MARKET BRIEF 2:Gold is extending its yesterday gains

(10 September 2020)DAILY MARKET BRIEF 2:Gold is extending its yesterday gains

10 September 2020, 09:32
Jiming Huang
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In the commodity market, oil prices are declining again after a moderate rebound on Wednesday. US crude stockpiles surprisingly rose last week, prompting investors’ fears that the supply/demand ratio becomes even more unbalanced, especially when the increasing number of COVID cases is hurting demand. The American Petroleum Institute said yesterday that US crude stockpiles increased by 3 million barrels in the week ending September 4, while analysts expected a decline by 1.4 million barrels.

The US Energy Information Administration (EIA) is set to release weekly inventory data later today. Previously, the EIA had already reduced its 2020 global oil demand growth outlook by 210,000 barrels per day.

WTI is currently down 0.21% to trade below $38, and Brent has declined by 0.15% to $40.73.

Gold is extending its yesterday gains as the US dollar is losing ground amid the stock rebound. The metal has added 0.10% to $1,957.

In FX, the US dollar is declining amid bullish equities and ahead of the ECB meeting. The USD index is down 0.21% to 93.105.

EUR/USD is up 0.20% to 1.1827. The ECB will discuss the euro’s recent rally and whether a strong currency impacts inflation and consequently the policy. Still, analysts expect that the central bank will make no changes to its current policy.

By Strategy Desk


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