Gold, oil rose – Weak U.S. Dollar Drives Buying Mood

Gold contracts rose yesterday evening (October 19). The positive factor was the depreciation of the dollar and buying pressure on safe havens after the U.S. published weak economic data.

  • Gold futures were up $4.8, or 0.27%, at $1,770.5 per ounce.
  • Silver futures were up 61.9 cents, or 2.66%, at $23.883 an ounce.
  • Platinum was up $9.2, or 0.89%, at $1,047.1 per ounce.
  • The palladium futures rose $87.80, or 4.4%, at $2,100.90 an ounce.

Gold contracts were supported by the depreciation of the dollar, as they became cheaper and more attractive for investors holding other currencies.

The movement index of the dollar against the six other major currencies in a basket of currencies was 0.24% lower at 93.7341.

The US Department of Commerce published weak economic data. Housing starts fell by 1.6% to 1.555 million units in September. This is the lowest level since April (1.580 million units in August). Home construction starts were affected by the rise in building material prices and labor shortages.

Construction permits fell 7.7% to 1.589 million units in September.

Crude oil futures continue to rise. This was driven by reports that the colder climate in China increased domestic energy demand.

  • WTI crude futures were up 52 cents, or 0.6%, at $82.96 a barrel.
  • BRENT crude futures were up 75 cents, or 0.9%, at $85.08 a barrel.

With winter approaching, China is facing extreme cold, especially in the northern part of the country. As a result, China’s energy demand for heating purposes has increased.

The price increase is also due to power producers switching to crude oil and diesel fuel, following the increase in coal and natural gas prices.

In addition, oil prices have also developed positively due to increased demand for oil. This is also due to the opening of economies as a result of the lifting of the COVID-19 freeze in many countries. Saudi Arabia has rejected a demand from the United States that OPEC and OPEC+ increase oil production to curb the rise in energy prices.

Investors will be keeping an eye on the OPEC+ meeting on November 4, where the oil production policy for December will be set. In addition, the weekly U.S. crude oil inventory report is published today by the EIA.

The Spot Market is Open

Wednesday, October 20, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,774.00
1,775.00
+4.90
0.28%
1,766.80
1,775.40
Silver
12.00
23.77
23.87
+0.14
0.59%
23.53
23.86
Platinum
12.00
1,037.00
1,047.00
-2.00
-0.19%
1,032.00
1,050.00
Palladium
12.00
2,021.00
2,171.00
-17.00
-0.83%
2,021.00
2,200.00
Rhodium
12.00
12,900.00
14,900.00
0.00
0.00%
12,900.00
14,900.00
Energy
Updated at

Price

Change

%Change
Crude oil
12.00

82.46

-0.50

-0.60%

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