Gold Drops against US Dollar Hike, Oil Rises Slightly

تم نشره في Sat 10 June / Jun 2017. 12:00 AM
  • A worker looks at a pump jack at an oil field Buzovyazovskoye owned by Bashneft company north from Ufa, Bashkortostan, Russia, July 11, 2015. - (REUTERS)

CAPITALS —AlGhad— Oil prices rose on Friday after a pipeline leak in Nigeria caused a suspension in sourcing, but crude still ended the week down nearly 4 per cent on persistent worries about global oversupply.

Lower US crude inventories and increasing support for continued OPEC-led production cuts inspired hope that the global supply glut can be reduced.

In the meantime, benchmark Brent crude LCOc1 settled up 7 cents at USD50.84. US light crude CLc1 was up 1 cent at USD47.84.

Commerzbank said in a note it was sceptical about OPEC's ability to support prices in the long term.

On the other hand, Gold prices were on track for their weakest session since December on Thursday.

Buoyed by a firm dollar and rising US rate hike expectations in March following buoyant US economic data and hawkish comments from Federal Reserve governors, Spot gold was down 1.39 per cent at USD1,231.56 an ounce, on track for the biggest one-day fall since December 15th, 2016.

US gold futures settled down 1.45 per cent at USD1,231.90, as futures for April delivery settled at USD1,232.90, down USD17.10.

Gold took a hit after data on Thursday showed US jobless claims fell to a 44-year low. Labour tightness, combined with rising inflation, could encourage the Federal Reserve to raise interest rates at its March 14-15 policy meeting.

Further weighing on gold were strong stock markets and dollar gains.

A correction in gold, however, is likely to be shallow as investors remained friendly to bullion as a hedge against global uncertainty and rising inflation, analysts said.

ABN Amro lifted its year-end 2017 gold price forecast by USD200 to USD1,300 on Thursday, but said prices would likely consolidate until turning higher later in the year.