Oil prices rose further on Wednesday, with the U.S. benchmark surging to its best level since July 2015 amid speculation weekly supply data due later in the day will show a large drop in U.S. crude inventories.
WTI Oil Surges to Highest Since July 2015 Ahead of U.S. Supply Data – Oil prices rose further on Wednesday, with the U.S. benchmark surging to its best level since July 2015 amid speculation weekly supply data due later in the day will show a large drop in U.S. crude inventories. Oil prices ended higher on Tuesday amid expectations that oil producing countries will agree to extend an output cut at their meeting at the end of this month. The Organization of the Petroleum Exporting Countries (OPEC), together with a group of non-OPEC producers led by Russia, has been restraining output since the start of this year in a bid to end a global supply overhang and prop up prices. The deal to curb output is due to expire in March 2018, but OPEC will meet on Nov. 30 to discuss the outlook for the policy.
Gold Prices Drift Higher; Fed Minutes, Batch of U.S. Data in Focus – Gold prices were higher in early dealings on Wednesday, extending gains from the last session as investors looked ahead to minutes of the Federal Reserve’s latest policy meeting for further hints on the likely trajectory of monetary policy in the U.S. in the months ahead. The Fed will release minutes of its most recent policy meeting at 2:00PM ET (1900GMT). The U.S. central bank left interest rates unchanged following its meeting on Nov. 1 and signaled it still intended to raise rates in December, as officials noted “solid” economic growth and a tightening labor market. Outgoing Fed Chair Janet Yellen said Tuesday that the Fed is “reasonably close” to its goals and should keep gradually raising interest rates to avoid the dual pitfalls of letting inflation drift below target for too long, and of driving unemployment down too far. The Fed is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting, according to Investing.com’s Fed Rate Monitor Tool. For 2018, the U.S. central bank is currently forecasting three interest rate hikes, but the markets expect two at most. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
Our Some Best Services Read it Here…