Rise in Oil Prices Archives -

Rise in Gold Price

Rise in Gold Price: Gold prices surged strongly during Wednesday’s trading, boosting the precious metal’s early profits.
This rise came amid weakened risk appetite and increasing fears of an economic recession.

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Rise in Oil Prices

Rise in Gold Price

Interest Rate Cut by the Bank of Canada

Rise in Oil Prices

Recent data on U.S. oil inventories indicate a significant drop of about 4 million barrels,
while the average expectations pointed to a decline of only about 2.6 thousand barrels.
According to U.S. Energy Information Administration data, oil inventories decreased by 3.741 million barrels,
while expectations were for a decrease of about 2.6 million barrels.
The previous reading showed a drop of 4.870 million barrels.
As a result, Brent crude prices rose by about 0.8% to reach $81.60 per barrel.
West Texas Intermediate crude prices increased by about 1% to $77.7 per barrel.

Rise in Gold Price

Gold prices surged strongly during Wednesday’s trading, boosting the precious metal’s early profits.
This rise came amid weakened risk appetite and increasing fears of an economic recession.
The upward movement of gold continued in the evening trading after releasing the U.S. Manufacturing PMI data.

Gold has enjoyed strong support as a haven during economic turmoil and volatility.
Data released this morning showed a deterioration in the manufacturing sector in the Eurozone and
a slowdown in activity during the current month,
raising investors’ concerns about the economic conditions in the world’s third-largest economic power.

Interest Rate Cut by the Bank of Canada

The Bank of Canada’s monetary policy committee decided
to cut interest rates by 25 basis points in its meeting held on Wednesday.
This is the second consecutive cut, bringing the primary interest rate down to 4.50%,
which is in line with market expectations for a rate cut by the Bank of Canada in this meeting.

It is worth noting that the Bank of Canada’s interest rate decision
pertains to the overnight lending rate among major financial institutions within the country.
Traders pay significant attention to changes in interest rates,
as short-term interest rates are the primary measure of a currency’s value.
When interest rates rise and exceed expectations, it is considered positive for the Canadian dollar,
while a larger-than-expected drop negatively impacts the Canadian dollar.

Rise in Gold Price

Stability of the Dollar Rate

Stability of the Dollar Rate: The dollar remained stable against most major currencies during trading on Monday,
the first day of the second half of 2024, as analysts focused on significant upcoming events this week.

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Slight Decrease in Gold Prices

Stability of the Dollar Rate

Rise in Oil Prices

Slight Decrease in Gold Prices

Gold prices slightly decreased during Asian trading on Tuesday, staying within a narrow trading range.
The primary reason was traders’ expectations for a series of signals regarding U.S. interest rates,
which led them to stay away from the metals markets.
In June, gold experienced a price drop due to fears of rising U.S. interest rates,
leading to higher dollar and treasury bond yields. Gold remained stuck near the $2300 per ounce level.

Stability of the Dollar Rate

The dollar remained stable against most major currencies during trading on Monday,
the first day of the second half of 2024,
as analysts focused on significant upcoming events this week.
Data from the Institute for Supply Management released on Monday
showed a decrease in the Manufacturing PMI to 48.5 points last month,
down 0.2 points from May’s reading of 48.7 points, contrary to expectations of a rise to 49.2 points.
This week, the market will be awaiting the speech by Federal Reserve Chairman Jerome Powell
at the Central Banking Forum in Portugal on Tuesday
and the release of the minutes from the last Federal Reserve meeting on Wednesday,
two days before the release of the monthly U.S. jobs report.

Rise in Oil Prices

Crude oil prices rose due to expectations of increased oil demand during the summer, along with production cuts by OPEC+.
However, factors limiting this rise included increased oil production from other producers
outside OPEC+ and market caution ahead of the upcoming elections.
Additionally, the Energy Information Administration (EIA) announced that oil production
and demand for major petroleum products reached their highest level in four months in April,
which helped support prices. Traders are also monitoring the impact of the Atlantic hurricane season
on oil and gas production and consumption, especially with the onset of Hurricane Beryl.

Stability of the Dollar Rate

Decline in British Growth

Decline in British Growth: According to data released by the Office for National Statistics in the United Kingdom,
the British economy failed to achieve significant growth in April,
The GDP recorded a change of 0.0% every month, which aligns with market expectations.
In the previous month, Britain recorded a growth rate of 0.4%.

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Decline in U.S. Indices

Rise in Oil Prices

Decline in British Growth

Decline in U.S. Indices:

U.S. stock indices saw a decline during the trading session on Tuesday,
with the Federal Reserve’s monetary policy meeting starting, which will last for two days.
Investors are expressing concerns about the unlikely prospect of a rate cut by the central bank this year.

The Dow Jones Industrial Average lost 215 points or 0.5%, while the S&P 500 index fell by 0.3%.
On the other hand, the NASDAQ Composite Index rose by 0.19% to reach 17,224 points.

The Federal Reserve’s meeting will conclude on Wednesday with the announcement of the interest rate decision,
followed by a press conference by the Chairman, Jerome Powell.
Despite some indications of an economic slowdown,
investors increasingly worry that this may not be enough
to prompt the U.S. central bank to cut interest rates in 2024.

Rise in Oil Prices

Oil prices rose on Wednesday, supported by optimism about global oil demand.
Reports from the U.S. Energy Information Administration and the Organization of the Petroleum Exporting Countries (OPEC)
showed a greater-than-expected decline in U.S. crude oil inventories over the past week.

Crude oil futures rose during the Asian trading session on Wednesday.
At the time of writing, July contracts were $78.36 per barrel, an increase of 0.59%.

Decline in British Growth:

According to data released by the Office for National Statistics in the United Kingdom,
the British economy failed to achieve significant growth in April,
with the GDP recording a change of 0.0% every month, which aligns with market expectations.
In the previous month, Britain recorded a growth rate of 0.4%.

It is worth noting that this indicator measures the change in the inflation-adjusted
value of all goods and services produced by the British economy.
It is highly significant as it is considered the broadest measure of economic activity
and the primary indicator of the economy’s health.
It is issued monthly, approximately 40 days after the end of the month.
Its effects are reflected in the movement of the British pound against other currencies.

At the same time, the data showed that the volume of industrial production in Britain declined by 0.9% in April,
which is worse than market expectations of a 0.1% decline.
Industrial production recorded a growth rate of approximately 0.2% in the previous month.

Decline in British Growth

Global gold prices declined

Global gold prices declined: Decline in Gold Prices during Wednesday’s trading due to the stabilization of the US dollar and the rise in Treasury yields.

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Decline in Gold Prices

Rise in Oil Prices

Important Statements from a Bank of Japan Member

Global gold prices declined:

Gold Prices declined during Wednesday’s trading due to the stabilization of the US dollar and the rise in Treasury yields.
This comes ahead of announcing a series of critical inflation data in the United States,
which could provide further insights into the Federal Reserve’s interest rate path.
The US dollar index rose, making gold less attractive to holders of other currencies,
while the yields on 10-year US Treasury bonds rose to their highest levels in several weeks.

Rise in Oil Prices:

Oil prices rose in Asian trading on Wednesday as investors expected major producers to continue reducing production at their upcoming meeting on Sunday.
It is also anticipated that fuel consumption will increase with the start of peak demand season in summer.
Investors are also awaiting US crude oil inventory data to be released by the American Petroleum Institute later today.
The data release was delayed by one day due to Memorial Day on Monday.
On the New York Mercantile Exchange, crude oil contracts for July
were traded at $80.09 per barrel at the time of writing, up by 0.33%.

Important Statements from a Bank of Japan Member:

In his statements today, Seiji Adachi, a member of the Bank of Japan’s Board of Directors, expressed several points:

The Bank of Japan should avoid raising interest rates prematurely or making large moves in interest rates,
as these could disrupt household and corporate investments.
The Japanese economy is experiencing a moderate recovery despite some weak signals,
with service consumption remaining steady in spending.
Frequent changes in monetary policy to stabilize foreign
exchange movements can lead to significant changes in interest rates.

Global gold prices declined.