- Crude Oil
Oil prices finish higher despite weak China data and gear up for a week of ‘amplified’ volatility: Oil futures rose Monday as traders shook off another round of lackluster data from China to focus on upcoming decisions by global central banks during a week that’s likely to see “amplified” volatility.
Oil prices were steady on Tuesday, after rising more than $1 in the previous session, as traders assessed concerns over U.S. production in the aftermath of Hurricane Francine and also the prospect of lower U.S. crude stockpiles.
Focus was also on the U.S. Federal Reserve’s policy meeting that will conclude on Wednesday.
Brent crude futures for November held their ground at $72.77 a barrel, as of 0815 GMT. U.S. crude futures for October inched 12 cents higher, or 0.17%, to $70.21 a barrel.
BP to Sell U.S. Onshore Wind Energy Business: The divestment is part of a wider strategy to simplify the business and increase the company’s value as it transitions to an integrated energy company, BP said.
- Gold
Gold prices dipped to $2,574 in the Asian session as traders eagerly await the Fed Interest Rate Decision due tomorrow. The ongoing speculation of a 50-bps interest rate cut from the Fed is expected to support gold. According to CME’s Fed Watch, the probability of the same is priced at 67%. In addition, concerns about the slowdown in China’s economy are also expected to support gold. With regards to economic data, the US Retail Sales data is expected to garner investor attention for the day.
From a technical perspective, gold has witnessed sideways trades since yesterday. However, looking ahead, bullish momentum is expected, as the yellow metal witnessed the formation of a bull flag with short-term targets reaching $2,600. On the flip side, the metal has support at the $2,580 and $2,574 price marks.
Trading Range: $2,580 to $2,600
Expected Trend: Bullish
Gold prices in the UAE for the day (morning) are as follows:
24 Carat AED 312.00
22 Carat AED 289.00
21 Carat AED 279.75
18 Carat AED 239.75
