Trump’s State of the Union speech

Daily Analysis - 06/02/2019

Trump’s speech sparks fears but gold is steady


On Wednesday Gold prices were steady following the U.S. President Donald Trump State of the Union speech. He promised to construct a border wall and provided insufficient evidence covering the continuing trade talks with China. Nevertheless, a stronger dollar topped bullion's profits. The U.S. gold futures remained steady at $1,318.19 an ounce while the Spot gold was also steady at $1,314.29 per ounce.

Trump addressed the committee of the House of Representatives including his concerns that Democrats end their resistance to fund the border wall.


Oil is going higher

On Wednesday Oil went higher although fears regarding the outlook for the global economy halt increased. That small increase is the first in three trading sessions. Global economic concerns have pressed market view lately and warnings that the global supplies are tightening.

International Brent crude oil futures went up about 7 cents to about $62.00 per barrel while the U.S. West Texas Intermediate (WTI) crude futures went up to $53.74 per barrel.


Dollar is steady for now

On Wednesday the popular greenback stood firm versus its rivals, giving a small response to U.S. President Donald Trump's State of the Union speech. The speech reached trade and budget problems but introduced some new surprises to investors.

The dollar index versus a basket of six major rivals changed at 96.070, after quickly reaching a near two-week high of 96.134.


The Australian dollar tumbled

After the chief of the central bank Philip Lowe stated that there is a possibility for a rate cut after more than a year the Australian dollar tumbled while indications of a tighter future policy are more real now.

In his first public address of the year, Lowe stated that rates could go in either way, depending on the inflation and the labor market. The Aussie dollar went down about 1% to $0.7160.

The Reserve Bank of Australia left its cash rate at a low of 1.5% since August 2016.


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