Business News Asia
Gold futures closed higher overnight (Oct 22). Investors are buying gold as a safe haven amid inflation concerns.
The gold futures were up $14.4, or 0.81%, to $1,796.3 per ounce.
Silver futures were up 27.9 cents, or 1.15%, to $24.449 an ounce.
The platinum contracts were up $2.4, or 0.23%, to $1,052.1 per ounce.
The palladium contracts were up $17.50, or 0.87%, to $2,035.60 an ounce.
Investors buy gold contracts as a safe haven, after growing concerns about inflation. The Fed predicted yesterday that US inflation will increase until next year and is going to start taper asset purchases soon, but will not raise interest rates.
Gold was also boosted by the release of the U.S. Manufacturing Purchasing Managers’ Index (PMI) at 59.2 in October, down from 60.7 in September and hitting a seven-month low.
The US services PMI was 58.2 in October, up from 54.9 in September, the highest in three months.
The Purchasing Managers’ Index (PMI) for the US manufacturing and primary services sector stood at 57.3 in October, up from 55.0 in September, and hit a three-month high.
On the energy side, crude oil contracts closed in positive continuation.
WTI crude futures were up $1.26, or 1.5%, to $83.76 a barrel.
BRENT crude futures were up 92 cents, or 1.1%, to $85.53 a barrel.
This was driven by the continued tight oil supply situation, travel relaxation, slowly recovering US crude oil production, and energy demand forecast that will increase during the holidays.
Energy analysts predict that the oil supply remains tight. Brent crude oil prices are expected to be around $85 a barrel by the end of the year.
The OPEC and IEA monthly reports suggest that the oil market volumes are very low in the short term. The number of US oil rigs fell for the first time in seven weeks and dropped two podiums to 443 podiums this week. That indicates a trend of lower oil production.
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Saturday, October 23, 2021