10/17/2024–|Last updated: 10/17/202401:50 PM (Mecca time)
Oil futures prices rose after data on an unexpected decline in US crude inventories. For its part, gold continued its rise, driven by expectations that major central banks would cut interest rates, while the dollar received additional support from the possibility of Donald Trump winning the upcoming US presidential elections.
Oil
Oil prices rose in early Asian trading on Thursday, shrinking the sharp losses they incurred over the past two sessions, after data in the oil sector showed an unexpected decline in US crude inventories last week.
Brent crude futures rose 13 cents, or 0.18%, to $74.35 per barrel at the time of preparing this report, and US West Texas Intermediate crude futures reached $70.54, an increase of 15 cents, or 0.24%.
The two crude oil prices fell at settlement yesterday, Wednesday, to their lowest levels since October 2 for the second day in a row.
The two crude oil standards fell by rates ranging between 6 and 7% from the beginning of the week until now after the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency reduced demand expectations for the years 2024 and 2025.
Prices also fell on the back of lower risk premiums and waning fears that an Israeli attack on Iran could lead to disruption in oil supplies, despite the continued uncertainty over the conflict in the Middle East.
Investors are still waiting for more details from China regarding its broad plans announced on October 12 to revive its slowing economy.
In the United States, market sources quoted figures from the American Petroleum Institute yesterday that crude oil and fuel stocks fell last week, despite expectations of a rise in crude stocks.
The sources, who requested to remain anonymous, said that crude inventories fell by 1.58 million barrels in the week ending October 11. She added that gasoline stocks fell by 5.93 million barrels, while distillate stocks fell by 2.67 million barrels.
gold
Gold prices rose today to hover near record high levels supported by factors: Among them is the ambiguity of what will result from the US elections and expectations that major central banks will reduce interest rates at a time when investors are awaiting a series of US data to obtain more indicators.
Gold rose in spot transactions by 0.31% to $2,682.10 per ounce at the time of writing this report, after prices reached $2,685.16 yesterday at their peak in the session, a level slightly lower than the record price recorded by gold on September 26, which was $2,685.42.
US gold futures rose 0.22% to $2,697.20.
Kelvin Wong, chief market analyst for the Asia-Pacific region at OANDA, said: “Investors are accepting gold as a safe haven to hedge against the uncertainty surrounding the US elections, and Trump’s presidential victory would support gold because it may lead to increased trade tension and an expansion of the budget deficit.”
US retail sales and industrial production data for September, as well as weekly unemployment claims data, are scheduled to be released later in the day.
The European Central Bank is likely to cut interest rates again as it says inflation control in the euro zone is improving.
Low interest rates and geopolitical tension support gold as a safe haven as it does not generate returns.
As for other precious metals, silver fell in spot transactions by 0.23% to $31.60 per ounce, platinum rose 0.17% at $1,000.05, and palladium rose 0.12% to $1,027.78.
Dollar
On the currency front, the Australian dollar rose today after employment numbers exceeded expectations for the sixth month, while the US dollar stabilized near the highest level in 11 weeks while receiving additional support from the possibility of Donald Trump winning the upcoming elections.
The most prominent event in Asia today was the conference held in China that focused on measures to support the country’s faltering real estate sector.
The yuan settled on the mainland at 7.1179 per dollar, while in the latest trading abroad it reached 7.123 per dollar.
The Australian dollar rose 0.20% to $0.6679 after data on Thursday showed that net jobs in Australia rose by 64,100 jobs in September compared to August, which far exceeds market expectations that indicated an increase of 25,000 jobs, while The unemployment rate remained constant.
In the broader market, the dollar recorded a strong performance after reaching the highest level in 11 weeks against a basket of currencies in the previous session.
The pound sterling was trading down 0.03% at $1.2989, but remained near the lowest level in two months that it recorded yesterday, Wednesday, due to inflation data in the United Kingdom, which was weaker than expected.
The euro saw little change, trading at $1.0854 before the European Central Bank’s upcoming monetary policy meeting later on Thursday, during which it is expected to announce another cut in interest rates.
The dollar received support not only from a series of positive economic data that prompted traders to reduce their expectations regarding the Federal Reserve (the US central bank) reducing interest rates, but also from the possibility of Republican candidate Donald Trump winning the elections scheduled for next month, because his policies mean reducing the odds of… Sharp reduction of interest rates.
The dollar index rose in the latest trading at 103.61, after recording a peak of 103.60 in the previous session.
Source : Reuters + CNBC + Websites
