Gold gained more than 1.2% while investors run for cover

Weekly Report - 16/09/2019

Gold Gains


On Monday the popular safe-haven Gold surged more than 1% while investors run for cover under the safe-haven assets. The surge came after an attack against Saudi oil plants that boosted the fears enveloping global energy supply. Now U.S. gold futures grew more than 0.80% and went to $1,512.0. Spot gold surged more than 1.25% to $1,507.39 per ounce. This development occurred following Saudi Arabia last Saturday when it closed down part of its oil production after a group of drones crashed the world’s biggest oil processing plant. The attack was claimed by Yemen’s Houthi rebels.

The Week that was

Last Wednesday President Donald Trump said in a tweet that he is working on a plan to pause the increase in tariffs on $250 billion value of Chinese goods, and will start this October. He described this progress as a “gesture of goodwill” to China. The president of the United States declared that the delay happened “at the request of the Vice Premier of China, Liu He, and because the People’s Republic of China will be celebrating their 70th Anniversary.”


Main Focus This Week

 An expert from S&P Global Platts today said that Last weekend's strikes on the most essential oil production plants in Saudi Arabia will clear out the world’s extra oil volume. Drones hit an oil processing plant at Abqaiq and Khurais oil area on Saturday. The strikes disrupted 5.7 million barrels per day crude generation. That is estimated to be 50% of the kingdom’s oil production and around 5% of the world’s daily oil production. Saudi Aramco reportedly intends to replace about a third of its production Monday. Sarah Cottle, the global head of market insight at S&P Global Platts said: “This heightens the risk premium, it puts a lot of pressure on the supply side."


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