Decline in Gold Prices: Gold prices declined on Thursday, as investors took profits following a continuous rise in the precious metal,
under pressure from investment institutions seeking to gather liquidity.
Content
Continuation of the Historic Decline of the Yen
Decline in Gold Prices
Gold prices declined on Thursday, with investors taking profits after a continuous rise in the precious metal,
pressured by investment institutions seeking liquidity.
Focus also shifted to U.S. economic data for indicators about the Federal Reserve’s path regarding interest rates.
Spot gold prices fell by 0.1 percent to $2313.44 per ounce, marking the fourth consecutive decline.
U.S. gold futures also fell by 0.3 percent to $2326.10 per ounce.
Stability in Oil Prices
Oil prices stabilized on Thursday, as fuel demand in the United States,
the world’s largest oil consumer declined.
Signs of an economic slowdown and concerns about escalating conflicts in the Middle East emerged.
Brent crude futures rose by nine cents to $88.11 a barrel, after falling 0.5 percent in the previous session.
West Texas Intermediate crude futures for June delivery rose by seven cents to $82.88 a barrel,
after falling 0.6 percent on Wednesday.
Data from the U.S. Energy Information Administration on Wednesday showed
that gasoline demand for the week ending April 19 decreased by 2.8 percent compared
to the previous week and by 11 percent compared to last year.
Continuation of the Historic Decline of the Yen
On Thursday, the yen fell to 155 against the dollar as
the Bank of Japan began a two-day meeting to determine interest rates.
This raised trader concerns about a potential intervention from Tokyo to support the currency.
Meanwhile, discussions about monetary policy continued.
After trading in a narrow range in the past few days, the dollar finally surpassed the 155 yen level
in the previous session for the first time since 1990.
The dollar reached a 34-year high of 155.74 yen on Thursday.
Speculation is mounting about the Japanese government’s intervention to support the yen,
affecting the dollar’s rise towards that level.
According to some market participants, this is considered a sign of Tokyo’s intervention.
As the Bank of Japan holds a meeting to discuss monetary policy,
expectations are that the central bank will keep its short-term interest rate target unchanged
at the conclusion of the meeting on Friday, after ending its negative interest rate policy last month.