OPEC, G20 meetings important for oil

Spot gold held steady at $1,213.70 per ounce having dropped to its weakest level since the beginning of this month at $1,211.30 in the previous session while U.S. gold futures were down about 0.1% to $1,213.

On Wednesday Gold prices were moderately constrained by a strong greenback after a senior U.S. Federal Reserve official affirmed that there is a demand for an additional hike in interest rates. This will be more costly for owners of other currencies.

On Tuesday Fed vice Chair Richard Clarita said that the central bank probably will proceed to steadily increase interest rates but it is very important to watch the economic data closely while this policy is approaching a neutral stance. John Sharma an economist with National Australia Bank said “The strength of the U.S. dollar has been bad for gold, while the Fed is a little more bullish about interest rates."

The president of the United States seems to be in a strongly positive attitude. Yesterday he indicated that the demand of US car rates on all transportations apart from the Mexican and the Canadian motors remained the same and possibly will come to effect as early as next week. This indicated a precise warning to Europe to speed up with the negotiation process. Another translation to that is that Trump can handle China and Europe and he is not afraid. It has been generally stated that the US president's gauge of accomplishment is the S&P 500.