Uncertainty led the curve of the value of gold to a maximum since September 2016, then a pullback came in, as it stumbled upon resistance forces. for gold peaked at $1,443.86 per troy ounce during London start. Escape from risk led Asian stock markets selloff, except China, which closed Monday in positive territory thanks to the successful action of the Chinese government to stabilize the economy economically and reduce the share of debt financing. European stocks are also experiencing an outflow of investors mainly because of the geopolitical factor, as well as growing risk-aversion before the ECB meeting on September 6. Despite the fact that September was considered a long-awaited month when Mario Draghi will give specifics about tapering off the , most experts of the Reuters expect a turning-point decision only in October, and the policy change should proceed exceptionally smoothly.
EURUSD added about half a percent, as weak data on the US labor market released on Friday put a dent on investor confidence in the US economy. Wage growth, a precursor of inflationary changes, amounted to only 0.1%, which allows us to expect the US economy will begin the fourth quarter with unsatisfactory . The increase in jobs was also disappointing, as it turned out to be below forecasts. Unemployment rose from 4.3% to 4.4%, but this change can not be interpreted unambiguously positively or negatively, as employment in the US has recently shown a weak connection with . The market estimates the probability of a rate hike in December at 37.3%.
Oil prices move in different directions, WTI finally began to win back losses after the hurricane Harvey, the most powerful in 12 years, paralyzed oil refining and drilling capacities near the largest fields in the US. Brent went into decline despite Russia's statement to support the extension of the OPEC + deal. The Baker Hughes report showed that the number of drilling rigs in the US increased by 3 to 943 (+446 from the same period last year). In Canada, their number decreased by 16 to 201.
Closing part of the trade and hold the rest till TP
This analysis is provided as general market commentary and does not constitute investment advice.