somrat4030
Well-known member
Forex Forum Commodity Updates.
Crude oil prices weakened over the past 24 hours as the growth-linked commodity was rocked by volatility in stock markets. A much higher-than-expected US CPI print sent front-end Treasury yields soaring as markets priced in a more hawkish Federal Reserve.
Meanwhile, a soft 30-year Treasury auction saw yields hit a high of 1.94%, more than the 1.88% pre-auction rate. The difference of 5.2 basis points, also known as the tail, was the largest on record for the 30-year auction.
Wednesday's strong drop in prices of the WTI was amidst shrinking open interest and volume. That said, further losses appear not favoured for the time, while bullish attempts keep targeting the area around the $85.00 mark per barrel.
Consumer inflation data on Wednesday showed U.S. prices were rising at a 6.2% year-over-year rate. The dollar gained on expectations that actions by the White House and U.S. Federal Reserve to curb the rising prices may lead to higher interest rates and tighter monetary policy. Oil typically trades inversely to the dollar.
U.S. President Joe Biden said he asked the National Economic Council to work to reduce energy costs and the Federal Trade Commission to push back on market manipulation in the energy sector to reverse inflation.
On the other hand, Spot Gold prices shot higher overnight as traders digested a much hotter-than-expected inflation print out of the United States. The October consumer price index (CPI) revealed the highest annual rate of inflation in over 20 years at 6.2% y/y. That was an 0.8% increase from last month's annual reading. Analysts expected a 5.8% figure.
Moreover, Apart from this, relatively thin liquidity conditions, on the back of the US bank holiday in observance of Veterans Day, warrant some caution before positioning for any meaningful intraday gains. Nevertheless, gold, so far, has managed to hold in the positive territory for the sixth successive day.
Previous update: Gold (XAU/USD) bulls step back from multi-month high, down 0.26% intraday around $1,848 during a quiet Asian session on Thursday.
The metal jumped to the highest in five months, also crossed the key upside hurdles near $1,832-34, after the US Consumer Price Index (CPI) jumped to the 30-year high of 6.2% YoY and bolstered Fed rate hike expectations. However, an off in the US bond markets recently limit the market's reaction.
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