February 24, 2024

Gold rebounded on rally in oil prices

LQDFX Forex news Blog: Gold rebounded on rally in oil prices

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Gold inched up 0.3% on Monday, rebounding from its lowest since Dec. 27 touched in the previous session on higher oil prices.

Investors resumed trading after the Easter holiday, with the bullion gaining further traction on higher crude rates. Gold is considered a safe investment during political or economic uncertainties.

Higher oil prices are influencing gold as the metal is often seen as a hedge against oil-led inflation. Oil prices rallied on news the United States is likely to ask all importers of Iranian oil to end their purchases or face sanctions.

However, a firmer dollar capped gains for the metal after data showed the United Sates’ economic growth might have picked up in the first quarter.

Spot gold was up 0.3% at $1,279.32 per ounce, by 1109 GMT, having touched $1,270.63 in the previous session. The metal dropped 1.2% in the previous week, marking a fourth consecutive weekly decline. This was the first-time gold speculators have held a net short position since December.

Elsewhere, silver rose 0.8 percent to $15.04 per ounce, while Platinum gained 0.8 percent to $907.25 per ounce.

Following the Good Friday holiday, markets in Britain, Germany and France will remain closed for Easter Monday.

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Forex – Gold rebounded on rally in oil prices

Brent crude, the global benchmark, rose as much as 3.3% to $74.31 a barrel, the highest since Nov. 1. It was up $1.94 at $73.91 at 0847 GMT. U.S. West Texas Intermediate crude climbed by as much as 2.9& to $65.87, the highest since Oct. 31. It was last up $1.51 at $65.51.

In November, the U.S. reimposed sanctions on exports of Iranian oil after President Trump unilaterally pulled out of 2015 Iran nuclear Deal (JCPOA). Washington, however, granted waivers to Iran’s eight main buyers that allowed them to continue making limited purchases for six months. Another drop in Iranian exports would further squeeze supply in a market already tightened

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money