Gold prices were wallowing at one-week lows on Thursday, after sharp falls in the previous session on a rally in the dollar after data showing faster U.S. economic growth
Gold Prices Wallow at 1-Week Lows on Stronger Dollar – Gold prices were wallowing at one-week lows on Thursday, after sharp falls in the previous session on a rally in the dollar after data showing faster U.S. economic growth and hopes for a diplomatic breakthrough with North Korea. The dollar was boosted after data on Wednesday showing that the U.S. economy grew by a larger than initially estimated 2.9% in the fourth quarter. The data left the way clear for a slightly more aggressive pace of interest rates hikes by the Federal Reserve this year. The Fed hiked rates for the first time this year last week and stuck to its projection for three rate hikes this year. The U.S. currency received an additional boost after China said on Wednesday that North Korea’s leader Kim Jong Un had pledged his commitment to denuclearization while U.S. President Donald Trump tweeted that Kim looked forward to meeting with him. The developments prompted speculation that a breakthrough over North Korea’s nuclear program could be
Oil Prices Rise On Hopes OPEC Will Extend Supply Cuts Into 2019 – Oil prices edged higher on Thursday, as the prospect of an extension to OPEC-led production cuts into next year provided support. Gains were limited by rising crude inventories and production in the United States. U.S. crude inventories rose by 1.6 million barrels in the last week to 429.95 million barrels, the Energy Information Administration (EIA) said on Wednesday. That confounded expectations for a decline of around 0.2 million barrels. U.S. crude oil production rose to a fresh all-time high of 10.43 million barrels per day last week, keeping it above Saudi Arabia’s output levels and within reach of Russia, the world’s biggest crude producer. Analysts and traders have recently warned that booming U.S. shale oil production could potentially derail OPEC’s effort to end a supply glut. OPEC, along with some non-OPEC members led by Russia, have been restraining production by 1.8 million barrels per day (bpd) to curb the market of excess supply. The arrangement, which was adopted last winter, expires at the end of 2018.
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