Gold gains
LONDON. — Gold prices gained yesterday after the US central bank reassured investors that increases to interest rates would be gradual, with geopolitical uncertainties also providing support.
Spot gold rose for a second session, firming by 0,9 percent to $1 316,63 an ounce by 1225 GMT, while US gold futures for June delivery added 0,9 percent to $1 317,30.
The US Federal Reserve said that inflation on a 12-month basis was “expected to run near the committee’s symmetric 2 percent objective”.
“Yesterday’s FOMC meeting didn’t spark much fireworks, but it eased concerns over whether the Fed was going to stick to its gradual tightening policy, which I believe they are,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“The key change is they added the word ‘symmetric’, which was taken as a sign that they would allow inflation to overshoot, which is positive for gold.”
Gold is highly sensitive to rising US interest rates because it becomes less attractive compared with interest-bearing assets.
Julius Baer economists expect the Fed to shift its guidance to four rate hikes this year, from three, which will weigh on gold, said Carsten Menke, commodities analyst at the Swiss bank. — Reuters.
Oil slips
LONDON. — Oil prices slipped yesterday as swelling U.S. crude inventories and record weekly US production clashed with OPEC supply cuts and the potential for new US sanctions against Iran.
Brent crude oil futures LCOc1 were at $72,91 per barrel at 1113 GMT, 45 cents below their last close.
US West Texas Intermediate (WTI) crude futures were 10 cents lower at $67,83 per barrel.
Prices have seesawed, edging lower during Asian trading hours, then higher at the start of the day in Europe, as the market grappled with conflicting fundamental signals.
On Wednesday, a report from the US Energy Information Administration (EIA) showed a 6,2-million-barrel jump in US crude inventories C-STK-T-EIA.
But bullish factors, including an increase in Saudi Arabia’s official oil selling price to Asia, also underpinned prices, according to Commerzbank analyst Carsten Fritsch.
“It may signal stronger-than-expected demand in Asia,” Fritsch said. “This, combined with constraints in (OPEC) production, could lead to higher prices.”
State-owned producer Saudi Aramco on Wednesday raised the June price for its Arab Light grade for Asian customers to a premium of $1,90 a barrel to the Oman/Dubai average, the highest since August 2014.
Additionally, the latest Reuters survey of OPEC production showed it pumped around 32 million barrels per day (bpd) in April, slightly below its target of 32,5 million bpd, due largely to plunging output in Venezuela. Fritsch said the cuts, along with demand growth, were more than offsetting the increase in US oil. — Reuters.