Decline in Oil gains: Oil prices fell in early Asian trading on Monday, reversing the gains made in Friday’s session.
Contents:
Decline in oil prices
Drop in gold prices
Ongoing Fall of the Japanese Yen to Record Lows
Decline in Oil Prices
Oil prices experienced a decline in early Asian trading on Monday, reversing the gains achieved in Friday’s session.
This was due to the easing of peace talks between Israel and the Palestinian Islamic Resistance Movement (Hamas) in Cairo,
which raised concerns about escalating conflict in the Middle East.
Additionally, inflation data from the United States led to reduced expectations for an interest rate cut in the near future.
Brent crude futures fell by one dollar, or 1.1 percent,
to $88.50 per barrel before slightly rising to $88.55 by 0149 GMT.
West Texas Intermediate crude futures fell by 84 cents, or 1 percent, to $83.01 per barrel.
Drop in Gold Prices
Gold prices fell on Monday, as hopes for an early U.S. interest rate cut faded.
The focus shifted towards the upcoming Federal Reserve meeting
on monetary policy and non-farm payroll data in the United States,
which is due this week for further monetary policy indicators.
Spot gold prices fell 0.5 percent to $2327.09 an ounce,
and U.S. gold futures fell 0.4 percent to $2338.30 an ounce.
Ongoing Fall of the Japanese Yen to Record Lows
The Japanese yen broadly weakened in Asian markets on Monday, against a basket of major and minor currencies,
It has deepened its losses for the fourth consecutive day against the U.S. dollar and recorded a new 34-year low.
The yen traded below 160 yen per dollar for the first time since April 1990.
Concerns increased about the interest rate differentials between Japan and the United States
following a less aggressive meeting by the Bank of Japan last week,
with the likelihood of a Federal Reserve interest rate cut not expected until next July.
Japanese authorities have repeatedly warned about the excessive weakness of the yen without taking actual intervention to bolster the currency.
Decline in Oil gains