The pressure of uncertain prospects continues to loom over the UK recovery. In this context, the Bank of England may leave interest rates at minimum levels and the next year. At yesterday's trading the pound fell against the dollar by more than 170 pips after the Bank of England's officials announced abount saving rates at 0.5%. They explained their decision by the fact that sharp slowdown in the UK can reduce growth and inflation.
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Gold prices at today's trading were under pressure close to record lows for the last five weeks. Investors are awaiting the release of major US data and hope to get specifics about the state of economy about the state of the economy and a potential growth of interest rates in near future. Gold futures on the New York Mercantile Exchange, Comex division for December delivery rose by $4.60, or 0.41%, to $1118.70 per troy On Tuesday, positions of gold fell to $1113.60, and reached record lows from October 2.
According to yesterday's official data from China it is reported, that country is now in a serious state of recession at the end of this year. Such a scenario causes the fears of new disturbances of prices on market of raw materials with the prospect of doing damage to British industry. China's manufacturing industry reduces the rates of work for the third month in a row, in turn, the service sector shows a slow, but steady growth since the beginning of 2008, during the crisis.
Famous investment banks, as well as some of the largest energy companies are losing hope that crude oil prices could reach even $60 in 2016. We recall that last year a barrel of oil cost over $100. Today, the weak demand for "black gold", as well as an overabundance of it on the market sent benchmark to the $50 in the third quarter. Now this indicator is at its lowest stable level since the financial crisis.
In anticipation of expected comments before the release of results of the Fed on basis of meeting, the gold price ruched up. Yesterday, gold led trading at $1 166.55 per troy ounce compared to today's $1 171.50 in the morning. Futures for December rate rose by $5.80 to $1 171.60 per ounce. Investors' sentiments are quite pessimistic about the potential increase in interest rates today, but there is a possibility that the chief regulator of the United States will raise rates at the upcoming meeting in December this year. This will be a strike to gold, which does not bring interest income.
According to forecasts of major investors of the oil market, oil quotations in the United States in near future will fall at record rates. This is primarily due to the growth of fuel inventories, which literally wiped out the possible rise of quotations in the nearest future.
The second day in a row, we are witnessing the growth of oil prices. This morning futures for Brent increased in price by $0.37 to $48.45 per barrel, futures for WTI crude oil rose by $0.21 to $45.59. This is due to the good economic data and sharp jumps of shares after the performance of members of the ECB who have expressed about readiness to use new stimulus measures. Daniel Ang, an expert from Phillip Futures, said, that it's all about the numbers.
The growth of oil reserves in the US last week exceeded the expectations of experts, in consequence of that the price for "black gold" is reducing. This morning futures for Brent crude oil declined in price by $0.14 to $48.57 per barrel. The same was happened with the WTI - futures fell $0.26 to $46.03.
Beginning of today's trading session marked a decrease in value of gold futures, that recede from record highs of last four months. This contributes to uncertain situation regarding the timing of rate increases from the Fed.
Economic statistics of United States has "soothing" effect on the gold, price for the precious metal fell from its highest level for the last 3.5 months. In the morning, the gold tradeded at $1 179.60 per troy ounce on the background of the end trading session on Thursday - $1 182.70. US futures for December rate were down in price by $7.90 to $1 179.60 per ounce. The current market price is expected to rise by 1.7% next week.