Gold was down in Asia on Friday morning, trading near a three-month low as the dollar strengthened over concerns about the Federal Reserve’s tightening plans.
Futures for gold were down 0.02 percent. The dollar, which usually moves in the opposite direction of gold, fell somewhat. The value of the dollar reached a 20-year high. Investors are anxious about the recession brought on by tightening policies, which has boosted the currency.
The benchmark 10-year Treasury yield increased slightly. The Producer Price Index (PPI) in the United States increased by 0.5 percent month over month in April, less than the 1.6 percent increase in March, as rising energy costs eased the pressure.
Oil prices increased on Friday but were set to fall for the first time in three weeks this week. Concerns about diminishing Russian supply were tempered by concerns about inflation and China’s COVID lockdowns impeding the global economy.
The price of Brent crude futures was up 85 cents. The potential of a European Union embargo on Russian oil limiting supplies and fears about failing global demand continue to push and tug the market.
Inflation and interest rate hikes have pushed the dollar to 20-year highs, putting a ceiling on oil price gains because a stronger dollar makes oil more expensive in other currencies.
Russia’s escalation of sanctions is anticipated to have a positive impact on oil prices.
The International Energy Agency, increased oil output in the Middle East and the United States, as well as a slowdown in demand growth are projected to fend off an acute supply deficit as the Russian supply interruption worsens.
Indonesia has seized 80,000 litres of cooking oil intended for East Timor, according to the commerce ministry, as it works to implement a restriction on the export of crude palm oil and its derivatives, including cooking oil.
Indonesia, the world’s largest palm oil producer, has stopped exporting crude palm oil and processed products since late last month in an effort to keep domestic cooking oil costs under control.
More at: FXlearnpro.com