Foreign exchange and commodities – gold on the road to recovery – economy

The euro fell on Tuesday. In the afternoon, the common currency traded at $ 1.1733, 0.4% lower than the night before. Traders have spoken of a strength in the dollar, which in turn puts the euro under pressure. Investors avoided riskier investments, after which the dollar profited as the global reserve currency and was able to appreciate against all other major currencies. The dollar was supported in the afternoon by the latest economic data from the United States. The industry unexpectedly increased production there in July.

Fears of slowing demand in Asia weighed on the price of oil for the fourth day in a row. The price of North Sea Brent fell 0.3% to $ 69.25 a barrel, while the price of US WTI light oil fell 0.4%. In China in particular, restrictions linked to the propagation of the delta variant are slowing the economic recovery. In Japan, too, more and more restrictions are being adopted to contain it. On the supply side, US shale oil production is also expected to hit its highest level since May 2020 in September.

The price of gold continued to recover from the last few trading days and hit just under $ 1,800. A troy ounce (around 31.1 grams) was listed on the London Stock Exchange for $ 1,795, the highest price since the August 9 price drop. By this time, the price of the precious metal had plummeted within minutes and had dropped below $ 1,700 for the first time since last March. After recent disappointing economic data in the United States, yields on US government bonds have fallen. This makes US government bonds less attractive to investors looking for safe investments, which supports demand for gold.

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