- The price of silver earns land to around 36.10 $ in the first bars of the Asian session on Monday.
- The US attacked Iran during the weekend, driving white metal.
- The preliminary PMI of the US Global S&P for June will be published later on Monday.
The price of silver (XAG/USD) advances about $ 36.10, breaking the three -day streak during Monday’s Asian negotiation hours. White metal attracts some buyers in the midst of the growing tensions in the Middle East after the US bombarded Iran’s nuclear sites.
The United States carried out air attacks in three nuclear sites in Iran early on Sunday despite the long -standing promises of US President Donald Trump to avoid new conflicts abroad. Iran has promised to respond, saying that “it reserves all options”, while Trump said that any Iranian retaliation against the United States “will be answered with a much greater force than the one witnessed tonight.” Any sign of climbing could increase the demand for shelter assets, such as silver.
The governor of the Federal Reserve (Fed), Christopher Waller, said Friday that the Fed is in a position to cut the policy rate as soon as in July. The Dovish comments of the Federal Reserve officials (FED) provide some support for the white metal. The lowest interest rates make money cheaper for foreign buyers, increasing global demand.
On the other hand, the renewed demand of the US dollar (USD) could limit the uprising potential of La Plata. Investors expect the preliminary reading of the US PMI of the US Global for June. If US economic data turns out to be stronger than expected, this could support the dollar in the short term.
WTI FAQS oil
WTI oil is a type of crude oil that is sold in international markets. WTI are the acronym of West Texas Intermediate, one of the three main types that include the Brent and Dubai’s crude. The WTI is also known as “light” and “sweet” by its relatively low gravity and sulfur content, respectively. It is considered high quality oil that is easily refined. It is obtained in the United States and is distributed through the Cushing Center, considered “the crossing of the world.” It is a reference for the oil market and the price of WTI is frequently traded in the media.
Like all assets, supply and demand are the main factors that determine the price of WTI oil. As such, global growth can be a driver of the increase in demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can alter the offer and have an impact on prices. OPEC decisions, a group of large oil -producing countries, is another key price factor. The value of the US dollar influences the price of WTI crude oil, since oil is mainly traded in US dollars, so a weaker dollar can make oil more affordable and vice versa.
Weekly reports on oil inventories published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect the fluctuation of supply and demand. If the data show a decrease in inventories, it can indicate an increase in demand, which would raise the price of oil. An increase in inventories may reflect an increase in supply, which makes prices lower. The API report is published every Tuesday and that of the EIA the next day. Their results are usually similar, with a 1% difference between them 75% of the time. EIA data is considered more reliable, since it is a government agency.
The OPEC (Organization of Petroleum Exporting Countries) is a group of 13 nations oil producing that collectively decide the production quotas of member countries in biannual meetings. Their decisions usually influence WTI oil prices. When OPEC decides to reduce fees, it can restrict the supply and raise oil prices. When OPEC increases production, the opposite effect occurs. The OPEC+ is an expanded group that includes another ten non -members of the OPEC, among which Russia stands out.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
