Oil Slumps 8% and Gold Declines Following U.S. Jobs Data – Century Financial

• Crude Oil

Oil prices drop 8% for the week, pressured by prospects of a slowdown in demand: Oil futures fell sharply on Friday to post a weekly drop of about 8%, with global benchmark prices settling at their lowest since 2021, driven by worries over a slowdown in demand.

OPEC+ delaying its oil-output increase won’t solve ‘pervasive’ worries over weak demand: The Organization of the Petroleum Exporting Countries and its allies on Thursday decided to postpone an increase in crude-oil production. But supplies aren’t the only problem for oil.

U.S. Crude Oil Stockpiles Fall More Than Expected: U.S. crude oil inventories fell more than expected last week amid a decline in imports, while production and refinery capacity use held steady, according to EIA data.

Chevron Wants the Oil to Keep Flowing in Venezuela After Disputed Election: Behind the scenes, Chevron’s message to the White House is that the oil giant needs to stay in Venezuela, even if Nicolás Maduro remains.

OPEC+ Members Consider Delaying Production Increase, Delegates Say: OPEC+ members are debating delaying a production increase that was supposed to start next month amid concerns over weak oil prices, delegates in the producers’ alliance said.
Gulf Markets

The ADX General is falling for the second day, dropping 0.4%, or 35.51 to 9,412.54 in Abu Dhabi in early trading. International Holding Co. PJSC contributed the most to the index decline, decreasing 0.4%. Al Khaleej Investment PJSC had the largest drop, falling 8.2%.
The DFM General Index opened 0.1% lower at 4,368.05 in Dubai. Emirates NBD Bank PJSC contributed the most to the index decline, decreasing 1.0%. Takaful Emarat Insurance PSC had the largest drop, falling 2.3%.
The Tadawul All Share Index opened 0.2% higher at 12,002.89 in Riyadh. Al Rajhi Bank contributed the most to the index gain, increasing 0.3%. United Co-operative Assurance Co. had the largest increase, rising 5.5%.
Oil rose from its lowest close since 2021 after a deep weekly loss pushed futures near levels regarded as oversold, with the focus on weather risks and reports this week that may clarify the demand outlook.
Brent climbed toward $72 a barrel after losing almost 10% last week, while West Texas Intermediate was above $68. Oil’s recent losses have been driven by signs of slowdowns in the US and China, endangering demand at a time of abundant supply. That’s left the 14-day relative strength index at 31, a signal losses may have been overdone.
Gold

Gold plunged Friday following mixed U.S. jobs data, which reduced the likelihood of a 50-point rate cut in the next Federal Reserve meeting. According to the CME watch tool, 75% of the market expects a 25-point rate cut. This update boosted Treasury yields and the U.S. dollar and pressured the dollar. However, Gold’s safe-heaven status is limiting the damage, as investors still fear geopolitical conflicts and recession.
On a related note, recent data from the People’s Bank of China (PBOC) indicated that the PBOC’s gold reserves remained stable at 72.8 million ounces for the fourth consecutive month. However, the value of these gold reserves in US dollars surged by US$6.3 billion on a month-on-month basis, reaching a record high of US$182.9 billion in that month.

On a technical level, Gold is currently trading near the 100 EMA at $2,496.58 and could test the 100-day SMA at $2,505.08. A break above this level could accelerate further toward previous highs of around $2,523. On the flip side, support could be seen around $2,478.6 or below the 200 SMA at $2,463.

Gold prices in the UAE for the day are as follows:
24 Carat AED 302.50
22 Carat AED 280.00
21 Carat AED 271.00
18 Carat AED 232.25

Last Updated on 5 months by News Desk 1