Gold holding on to gains
US Oil production makes headwinds strronger
Softness in the dollar index is helping the precious metal- gold. The dollar weakness is triggered because of the worries around the global trade war. Donald Trump, the US president, is facing strong political pressure to soften his stance towards his announcements of trade tariffs.
If the new form of NAFTA deal is signed and becomes a reality, he may change his mind towards these tariffs. Investors will also be looking to learn more from FOMC member Brainard about his stance on the interest rate hikes.
Investors piled their bets by buying crude oil which helped the crude. The IEA fuelled the rally in the oil price by saying global oil demand is expected to grow. The oil price has been consolidating for the past few days and this was the break which the market needed.
However, the surge in the US crude oil production remains the threat and this is weighing on the price.