The prices of both gold and the dollar rose during today’s trading as traders awaited more economic data to evaluate the Federal Reserve’s (US central bank’s) next move regarding monetary policy, while oil prices rose on the impact of Chinese data improving the services sector.
gold
Gold in spot transactions increased 0.27% to $2,333.15 per ounce, after prices fell 1% in the previous session, and US futures contracts for July delivery rose 0.27% to $2,342.
The dollar rose after reaching its lowest level in nearly two months in the last session, while standard 10-year Treasury bond yields remained near their lowest level in approximately 3 weeks, which makes the precious metal more attractive to dealers.
Data on the services index issued by the Institute for Supply Management in the United States is scheduled to be published today, in addition to the jobs report for further indications of the strength of the American economy.
Gold is usually seen as a hedge against inflation, but high interest rates increase the opportunity cost of holding the non-yielding metal.
The World Gold Council said that net purchases of gold by global central banks rose last April, indicating continued strong appetite despite the rise in metal prices.
In terms of other minerals:
- Silver rose in spot transactions by 0.23% to $29.57 per ounce.
- Platinum increased 1.41% to $1,001.
- Palladium increased 0.84% to $923.
The dollar index, which measures the performance of the US currency against 6 major global currencies, rose.
Oil
Oil prices rose after a private sector survey in China showed that services activity grew in May at the fastest pace in 10 months, while employment levels expanded for the first time since January, indicating a sustained recovery in the second quarter for the second largest economy in the country. the world.
The Caixin/Standard & Poor’s global services purchasing managers’ index increased to 54 points from 52.5 last April, achieving growth for the 17th month in a row and at the fastest pace since July 2023. The 50-point barrier is the difference between growth and contraction.
Combined with the Caixin Manufacturing Purchasing Managers’ Index, which reached its highest level in nearly two years, the readings point to business activity growing strongly last month, although more indicators, including exports, bank lending and retail sales, are due to be released, will give more insight. Evidence of the driving force of growth.
The price of a barrel of Brent crude rose 0.05% to $77.57 per barrel – at the time of writing the report – while a barrel of US crude settled at 73.25, which is the level of yesterday’s trading settlement.
Both contracts fell about a dollar in yesterday’s session on Tuesday and about $3 a barrel on Monday, under pressure from the OPEC Plus coalition announcing plans to increase supplies starting in October, despite recent indications of weak demand growth.
Sources quoted from the American Petroleum Institute said that stocks of crude oil, gasoline, and distillates in the United States rose last week, and rising stocks are usually a sign that supplies exceed demand.
Figures from the American Petroleum Institute showed that crude inventories rose by more than 4 million barrels in the week ending May 31, compared to analysts’ expectations of a decline of 2.3 million barrels in a Reuters poll.
