Gold prices continued to hover near two-and-a-half week highs on Friday, despite a mild rebound in the greenback as trading volumes were expected remain subdued ahead of the Christmas holiday.
Gold Prices Continue to Hover Near 2-1/2 Week Highs – Gold prices continued to hover near two-and-a-half week highs on Friday, despite a mild rebound in the greenback as trading volumes were expected remain subdued ahead of the Christmas holiday. The report came a day after the House of Representatives gave final approval to the biggest U.S. tax overhaul in 30 years, marking President Donald Trump’s first political victory for . Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Oil dips from highs, but OPEC’s cuts still support market – Oil prices on Friday dipped away from some of their highest levels since 2015, weighed down by rising U.S. output and the expected January re-opening of the Forties pipeline in the North Sea. Despite this, markets remained well supported by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia. Market liquidity was drying up on Friday as traders closed positions ahead of the upcoming Christmas and New Year breaks. The dip on Friday was due to an outlook for rising supplies that triggered those holding long positions to sell-out ahead of the year-end holidays, traders said. Also weighing on the market was the expected return of the 450,000 barrels per day (bpd) Forties pipeline system in the North Sea in January. The pipeline, which delivers crude underpinning Brent futures, was shut earlier this month due to a crack. Operator Ineos said on Thursday it expected to complete repairs around Christmas and to gradually restart the system in early January. Longer term, analysts said crude production in the United States that is fast approaching 10 million bpd would also drag on oil prices, and undermine OPEC’s effort to tighten the market and prop up prices. “Supply is expected to grow further, paving the way to an oversupplied market, which can again exercise downward pressure on oil prices,” consultancy Rystad Energy said in a note.
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