The U.S. dollar remained on the defensive early Thursday, after yesterday’s declines led by increased uncertainty over another U.S. rate hike in 2017 and President Donald Trump’s fiscal agenda after abolishing the Manufacturing Council and Strategy & Policy Forum.
Crude oil prices were a dog yesterday as the summer doldrums and rising U.S. oil production failed to inspire the market despite another near record crude oil draw. The market also fell on a report that the United States will sell more oil out of the Strategic Petroleum Reserve. Shale hopes may run high as we get into shoulder season yet the drop in oil inventory will start to become a concern as soon as the normal players start paying attention to massive crude drawdowns and near record global demand.
The last couple of years and—in particular—the last couple of months were very difficult for gold traders—i.e. they were boring. Despite several huge daily price swings, the precious metals market has not been going anywhere, moving in and around the $1,100 - $1,300 price range.