The yellow metal was sitting on some gains this week, buoyed by reports that several central banks in emerging markets were stocking up on the yellow metal. Dovish-leaning comments from Federal Reserve Chair Jerome Powell also furthered the yellow metal’s advance.
Oil and gas companies restarted some operations on Tuesday. Some ports reopened and most producers and facilities were ramping up output, although some facilities sustained damage and power had not been fully restored yet.
Market participants are also keeping an eye on the situation in the Middle East for more trading cues. Oil prices settled down 1% on Monday amid hopes a possible ceasefire deal in Gaza could reduce worries about global crude supply disruption.
The largest ports in Texas have closed operations and blocked traffic over the weekend to prepare for tropical storm Beyl, which is set to strengthen back into a hurricane before making landfall.
Crude prices were headed for a fourth week of strong gains, amid expectations that oil markets will tighten further in the coming months, although trading volumes were muted on account of the U.S. market holiday on Thursday.
Oil prices edged lower on Thursday, retreating from the previous session’s multi-month highs, with investors taking profits as demand caution remained in focus despite last week’s decline in U.S. inventories.
According to Citi, “Gold investment demand in China and central banks has risen to 85% of mine supply during 1Q’24 and averaged more than 70% of mine supply over the past two years.” This surge in investment demand has counteracted the negative impact of higher US real interest rates, pushing gold prices to record highs.
U.S. West Texas Intermediate (WTI) crude gave up most of its gains from earlier in the day as the forecast track for Hurricane Beryl continued to aim it away from major offshore production areas in the U.S.-regulated northern Gulf of Mexico.
Gold prices weakened in Asian trade on Monday, taking limited support from increased expectations of U.S. interest rate cuts as traders awaited more cues from the Federal Reserve and U.S. economy this week.
The yellow metal had stuck to a tight trading range through most of June, amid growing uncertainty over the path of U.S. interest rates. While some data showed the U.S. economy was cooling, Federal Reserve officials warned that sticky inflation was likely to delay any plans to cut interest rates.
