Maybe rig count cuts matter after all? Market bottoms are usually formed after a price drop cuts into production and investment at a time when low price creates more demand. That looks like the current scenario in crude oil.
Trading has gotten off on the wrong foot for those who are inclined to prefer the U.S. equity markets and the U.S. dollar this morning as both are getting pummeled in the face of U.S. economic data that hasn’t given anyone reason to be optimistic. To start the bad news, the oft cited labor release of ADP Employment Change fell down to 189k whereas 227k was expected.
The Indian Government today announced considerable hike in tariff value for imported gold and silver. The import tariff value of gold was hiked by 2.7% and that of silver was hiked by 6.05%, in tandem with price of the precious metals in the international market.
Gold dropped 0.11% or $1.30 and closed at $1,184.20 an ounce yesterday, while silver lost 0.36% or $0.06, closing at $16.65 an ounce. Overnight in Singapore, gold prices again fell marginally to touch a low of $1,181 per ounce prior to small gains in London this morning.