Gold prices are showing the decrease for the fifth week in a row now. The precious metal fall down by 0.3 % to trade at 1211 USD ahead of the market close on Friday. On a weekly basis, the medium fall down was by 0.1 %. Friday saw Gold to edge lower to eliminate a weekly gain as US dollar has increased its strengths due to Turkish financial troubles. Experts believe that the US economy remains on solid footing. Expectations for high rates will typically weigh on gold prices which have already been hampered by continued strengths in US dollar. Despite the fall in price, gold has managed to hold above a key point in price and it seems that the next week prices will be affected by a reaction of the recent lows.
Following its 3 % decrease on Wednesday, oil prices remained steady on Thursday. At 7:25 a.m. EDT on Thursday, WTI Crude was trading down 0.12 percent at $66.86, while Brent Crude was up 0.17 percent at $72.40. The news about trade war between the United States and China continue to have its impact on prospects of global demand for crude oil. China and the United States conducted a new round of tariffs and counter-tariffs on US$16 billion worth of each others’ imports, with China implementing tariffs on 333 U.S. goods, including petroleum products. China, however, removed crude oil from the list of products up for tariffs beginning on August 23.
Despite China securing crude oil import tariffs for now, the escalating trade war has traders and investors worried that not only it could force crude trade in the dispute, but also damage the economic growth in the two biggest economies in the world, which in turn will almost certainly affect global oil demand and demand for other commodities.
US markets seemed to bear losses during the past week. The news about a financial crisis in Turkey and trade war between China and United States had its negative impact throughout the week. Only Nasdaq managed to show 0.4 % weekly gain. The S&P 500 had to endure three consecutive losing sessions and suffered a weekly loss of 0.3%, while the Dow Industrials also had three consecutive losing sessions and a weekly loss of 0.6%.
The losses came on investor fears of Turkey’s financial crisis spreading to European banks or to eurozone countries. By the close on Friday, the pan-European Stoxx Europe 600 was down 0.9% on a weekly basis. Germany’s DAX fell 1.5% for the week and the CAC 40 in France had a 1.2% weekly loss. Both indices had their worst weekly losses since late June. In Italy, the FTSE MiB underperformed as it fell 2.4% for the week, while the IBEX 35 in Spain was 1.4% lower on a weekly basis.
Asian markets suffered a choppy week, especially in China, as trade war fears continued to dominate investor sentiment. The Shanghai Composite gained 2.1% for the week, while the Hang Seng in Hong Kong had it even better, rising 2.5%. This comes off weekly losses of 4.6% and 4.0% respectively the week before. Japan saw the Nikkei give back a weekly gain in the final session, to post a 1.0% weekly loss. South Korea also gave back weekly gains, erasing four sessions of gains on the final session of the week to edge lower by 0.1% on a weekly basis. Rounding things out, Australia’s S&P/ASX 200 added 0.7% for the week.