The release of crude oil inventories earlier today showed a surprise increase in the number of barrels.
Gold dives in Asia on China consumer prices
On Wednesday, gold sank in Asia because the previous month weaker than anticipated consumer inflation in China affected views on global inflation soaring more than expected this year.
February delivery gold futures dived 0.12% being worth $1,312.10 a troy ounce.
China’s consumer prices rallied 0.3% on month and also at a 1.8% on year, as official data disclosed on Wednesday, which is below the anticipated 0.4% and 1.9% profits observed respectively.
Overnight, gold kept easing from multi-month maximums amid a revival in the greenback as market participants weighed the prospect of global monetary policy tightening after the BOJ reduced its bond purchases.
On Tuesday, gold rebounded further from four-month maximums because treasury yields tacked on, backing dollar strength amid soaring hopes for global monetary policy tightening after the BOJ reduced its purchases of long-term bonds.
In a soaring interest rate environment, traders’ appetite for gold weakens as the unique opportunity cost of holding gold inches up relative to other interest-bearing assets, including bonds.
The yellow metal reached the highest levels in 6 years amid the global risk aversion.
The yellow metal could not stay for a long time near the $1,401 level.
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