The calm in Middle East gave peace of mind to investors, driving down the prices of the Petroleum and of goldboth values sensitive to market uncertainties.
The Brent futures fell 24 cents, or 0.27%, to $88.18 a barrel, and those of the West Texas Intermediate (WTI) They were down 33 cents, or 0.4%, at $83.03 by 1024 GMT.
This reversed part of the 1.6% advance recorded by Brent oil the day before, in which the market was also favored by the weakness of the dollara surprise drop in crude oil stocks in USA and a decline in business activity in the world’s largest oil consumer.
The analysts of Goldman Sachs pointed out in a note that the perception of a détente between Iran and Israel could remove another $5-10 per barrel from “the still elevated geopolitical risk premium” in the coming months, placing Brent at a ceiling of $90.
U.S. business activity cooled to four-month lows in April and S&P Global said on Tuesday that its flash composite PMI manufacturing index, which tracks the manufacturing and services sectors, fell to 50.9 this month from 52.1 in March.
“The world’s largest economy currently falls into the ‘bad news is good news’ category,” said Tamas Varga of the brokerage. PVM. “The odds of a rate cut from the Fed have grown again,” he added.
A cut in interest rates in the United States could boost economic growth and, in turn, demand for Petroleum.
Investors no longer turn to gold
The prices of gold They fell on Wednesday for the third consecutive session, weighed in part by reductions in hedge funds as fears of an escalation in the Middle East diminished.
Spot gold fell 0.3% to $2,314.95 per ounce at 1001 GMT, having hit its lowest since April 5 in the previous session. The US gold futures They fell 0.6% to $2,328.40.
The US dollar regained some ground on Wednesday, while benchmark US yields Treasury bond They also rose, making bullion, which is quoted in dollars, less attractive to holders of other currencies and as an investment option compared to debt.
The prices of gold They have fallen more than 3% since the beginning of this week.
He gold The spot could retest the resistance of $2,336 per ounce as it managed to stabilize around the key support of $2,311, according to Reuters technical analyst Wang Tao.
Source: Ambito
