Gold plunged significantly, it dropped below 6-month low yesterday. Prices witnessed its biggest intraday fall since 16 May 2023. A strong bullish momentum in US currency and bond yield continued weighting on the sentiment.

The dollar made a new multi week high as the euro plunged after the eurozone posted abysmal money supply data that showed a record drop in the amount of money in circulation as banks refrained from lending and depositors kept money in savings. ​

Adding to this, US orders for long-lasting or durable goods rose a stronger-than-expected 0.2% in August, though the increase stemmed from higher defense spending as Washington sought to replenish politically-sensitive military hardware sent to Ukraine.

Crude oil in the inverse direction yesterday. Prices witnessed more than 3% speculative jump after U.S. crude stocks fell more than expected, adding to worries of tight global supplies.

U.S. crude stocks fell by 2.2 million barrels last week to 416.3 million barrels, government data showed, far exceeding the 320,000-barrel drop analysts expected in a Reuters poll.

Crude stocks at the Cushing, Oklahoma, storage hub, delivery point for U.S. crude futures, fell by 943,000 barrels in the week to just under 22 million barrels, the lowest since July 2022, data showed.

Meanwhile, persistent concerns over an economic slowdown in China, the world’s largest copper importer and strong dollar hold copper prices lower.

The dollar index which measures the currency against six major counterparts, was up 0.60% at 106.8180 (At 11.50pm). MCX Gold future settled at 57672 down 1.30%. Silver at 70549 down 1.71%. Copper prices settled at 709.25 down 0.42%.  Crude oil settled at 7792 up 3.30%. Natural gas settled at 244.10 jumped 12%.

Economic data and events scheduled today

Eurozone

All day – German Prelim CPI m/m. Data is foreseen at 0.3% from previous 0.30%.

At 12.30pm –Spanish Flash CPI y/y. Data is foreseen at 3.5% from the previous 2.6%.

At 1.30pm- ECB Economic Bulletin.

Above data could have a volatile impact on the Euro.

U.S.

At 6.00pm-.

 Final GDP q/q. Data is foreseen at 2.2% from previous 2.1%.

Unemployment Claims. Data is foreseen at 214k from previous 201k.

Final GDP Price Index q/q. Data is foreseen at 2.0% from previous 2.0%.

At 6.30pm – FOMC Member Goolsbee Speaks.

At 7.30pm – Pending Home Sales m/m. Data is foreseen at -1.1% from previous 0.90%.

At 8.00pm – Natural Gas Storage. Foreseen at 90B from previous 64B.

At 10.30pm – FOMC Member Cook Speaks.

All above data could have a volatile impact on the dollar.