Forex Marketz Daily Forex News – Fully Markets Update
During the Tuesday Asian trade session, gold futures were trading steady. Traders were digesting the news that the United States will oil wavers on Iranian crude exports on May 2. The dollar was also trading lower which supported the yellow metal.
The widely traded spot gold contract was trading higher. The spot contract added 0.1 percent to trade at $1,275.62 per ounce. Yesterday, this contract was at its lowest price level since December 27 at $1,270.63 per ounce.
U.S. gold futures, for front end delivery, were up $1.60 to close the Asian trade session at $1,277.60 an ounce.
The dollar index, which measures the U.S. currency in a basket against six other major Forex partners, was down 0.2 percent. A weaker dollar makes the precious metal more attractive for traders using other currencies.
Asian Traders React to the end of Iranian Oil Waivers
Yesterday, the United States demanded that importers of Iranian oil cease imports by May 1. If they do not comply then they could face sanctions. This has brought to an end six months of waivers that allowed Iran’s eight biggest oil importers to continue importing Iranian oil.
Before the sanctions went back into force, last year, Iran was the fourth largest producer in the Organization of the Petroleum Exporting Countries (OPEC). Iran pumped about three million barrels per day. As of April Iranian oil exports are now well below one million barrels per day.
Traders are also monitoring increasing trade tensions between the United States, the European Union and Japan. Japan is starting trade talks with the U.S. on Friday and the end of waivers will possibly cause the rift between Washington and the EU to widen. This will also support safe haven asset classes like the yellow metal.
