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.
Crude prices edge down in Asia after early profits
On Thursday, crude reversed course and dipped in Asia, as market participants moved on from a lower than expected build in American crude stocks as well as a supply disruption in Libya and waited for the latest weekly rig count data from America for further guidance.
In New York, April delivery crude futures lost 0.02%, hitting $49.49 a barrel. Meanwhile, in London, Brent futures sank 0.19%, hitting $52.44 a barrel.
Meanwhile, traders turn attention to Baker Hughes rig count. The previous week’s data disclosed that the number of active American rigs drilling for crude grew by 21, the tenth weekly soar in a row. It increased the total count to 652, which is the most impressive outcome since September 2015.
Overnight, crude futures grew after the latest Energy Information Administration report revealed a smaller than expected soar in American crude stockpiles, while crude production disruptions in Libya kept lifting sentiment.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.