Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
API estimates suppress crude in Asia
On Wednesday, crude went down in Asia because gloomy US industry inventory estimates affected market sentiment and attention is shifting to an OPEC gathering in Vienna on oil output curb extensions.
January delivery crude futures dived 0.10% in New York being worth $57.67 a barrel. At the same time, in London, Brent futures lost 0.02% reaching $62.99 a barrel.
American crude stocks edged up by 1.821 million barrels, as the American Petroleum Institute informed on Tuesday. Gasoline supplies headed south by 1.529 million barrels, distillates added by 2.696 million barrels.
At the oil storage hub at Cushing, Oklahoma, supplies went down by 3.178 million barrels
Market experts expected crude stocks to slump by 2.301 million barrels at the end of the previous week. As for distillate stocks, they were supposed to rally by 230,000 barrels. Additionally, gasoline inventories were forecast to add by 1.199 million barrels.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...