Silver and Oil following the Gold!
Earlier today in the Asian season, Spot Gold, in an apparent sell-off, lost almost 5%, and Silver dropped 7% before both can regain most parts of their losses! After recovery, now at the current level, Gold is down 1% to $1,745 an ounce, while Silver was 1.9% lower at $23.90 an ounce.
Last Friday, the market downtrend came after stronger USD and Job data, which tells us that market recovery is going well, so safe-haven demand for Gold has decreased.
On the other hand, excellent recovery helping the positive market sentiment, and positive sentiment in the market with great job reports, will put pressure on FED officials to start tapering and increase the rates.
Alex Kuptsikevich, senior market analyst at trading platform FxPro.: "Robust employment and wage growth are removing the last formal obstacles before the Fed starts cutting back on its asset purchase program. Expectations have increased that these first cuts in the [bond-buying] program could come as soon as September."
As Gold and Silver know as safe-havens, with tapering bond purchasing plans and minor attraction in the stock market, they can be interested for investors to save their cash and wait for the following opportunities, so this plan can help the Gold and Silver to recover more if Hawkish thoughts get more fans.
In the oil market, prices took a hit, but for different reasons. Investors are a bit worried about the virus spreading, especially with news from china that the new infection number rose to its 6-month high and caused isolation in some Chinese areas as it means lower energy demand. Today, Brent Oil was down 4.05% to $67.83 and now corrected to $6873, while WTI crude decreased by 4.25% to $65.36 a barrel before returns above $66.40.